Question

can you answer these

Which are affected by the factors of production? Choose three answers.

the demand of the item
the availability of the item
the cost of the item
the quality of the item
the popularity of the item

When entrepreneurs develop new products, other companies also experience growth because they

immediately copy the successful product.
create many companion products.
try to develop their own products.
attempt to improve the product.

Which of these practices describe how producers in oligopolies generally try to create competition? Check all that apply.

by keeping prices low
by offering promotions
by advertising
by cultivating brand loyalty
by overcoming barriers to entry
by developing a specific image

It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. For this company, the $15 is the _______, and discontinuation of shirt production is considered their __________.

opportunity cost; production cost
production cost; resource cost
production cost; opportunity cost
resource cost; production cost

Gross domestic product (GDP) is the value of goods and services produced in a country annually.

It can best be described as measuring an economy’s

total product.
total demand.
total input.
total output.

Answer 1

Here are the answers:

1) Affected by the factors of production (choose three):
- the availability of the item
- the cost of the item
- the quality of the item
(These relate to supply—land, labor, capital, and entrepreneurship—while demand/popularity are demand-side.)

2) When entrepreneurs develop new products, other companies also experience growth because they
- create many companion products.
( Innovation creates markets for complementary goods and services.)

3) How producers in oligopolies generally try to create competition (check all that apply):
- by offering promotions
- by advertising
- by cultivating brand loyalty
- by developing a specific image
(They rely on non-price competition rather than price cuts or removing entry barriers.)

4) Cool Clothes Company: $15 is the _______, and discontinuation of shirt production is their __________.
- production cost; opportunity cost

5) GDP can best be described as measuring an economy’s
- total output.