In making a production decision, an entrepreneur:
- Decides what level of output will maximize profits: This involves determining the optimal quantity of goods or services to produce that will result in the highest profitability.
- Decides whether to enter or exit the market: This refers to the decision of whether to start a new business or venture in a particular market or to cease operations in a market where the business is not performing well.
- Determines plants and equipment: This entails selecting the appropriate facilities, machinery, and equipment needed for production based on factors such as capacity, efficiency, and cost-effectiveness.
- Can change both fixed and variable inputs: Entrepreneurs have the flexibility to adjust both fixed inputs (such as capital investments and facilities) and variable inputs (such as labor and raw materials) based on the changing needs of the business and market conditions.
Therefore, all the statements provided are correct.