Question

In utilizing the factors of production, entrepreneurs are limited by how much they can produce because:

a.
they are unsure of how much of a product consumers want.
c.
the opportunity cost can not be measured.
b.
the factors of production are limited.
d.
they are always limited by technology.

Answer 1

The correct answer is the third one : the factors of production are limited.

Answer 2

the factors of production are limited.

Step-by-step explanation:

In a market economy, the production of an industry depends on the combination of the factors of production, which are capital and labor. Capital consists of all productive machines, tools and inputs, while labor depends on the supply of labor. Since inputs are usually natural resources, this is the biggest constraint that entrepreneurs face. To overcome this, technology helps rationalize resources to produce more with fewer inputs.