Question
Which of the following is/are the characteristic(s) of a firm? [I]: It represents the unit that employs factors of production to produce goods and services. [II]: The firm could take different forms. [III]: The firm largely determines how goods and services are produced.
[I] and [II] only
[I] and [III] only
[II] and [III] only
[I], [II] and [III]
None of the above
[I] and [II] only
[I] and [III] only
[II] and [III] only
[I], [II] and [III]
None of the above
Answers
GPT-4o mini
The correct answer is: **[I], [II] and [III]**.
All three statements describe characteristics of a firm:
- **[I]** is true because a firm indeed represents a unit that employs factors of production to produce goods and services.
- **[II]** is true as firms can take different forms (e.g., sole proprietorships, partnerships, corporations).
- **[III]** is also true because firms largely determine how goods and services are produced, which includes decisions about production techniques, labor, and other factors.
Thus, all statements are characteristic of a firm.
All three statements describe characteristics of a firm:
- **[I]** is true because a firm indeed represents a unit that employs factors of production to produce goods and services.
- **[II]** is true as firms can take different forms (e.g., sole proprietorships, partnerships, corporations).
- **[III]** is also true because firms largely determine how goods and services are produced, which includes decisions about production techniques, labor, and other factors.
Thus, all statements are characteristic of a firm.