4
QuizMultiple Choice

Determining Market Price

Question 4 • MNPS Economics FTC 25-26

Which best describes the role the availability of resources plays when a company is considering whether to produce a certain good?

Answer
A
Resources can always be obtained, no matter what the cost.
B
If a resource is difficult to obtain, production costs will be high.
C
Resources play no part in a company’s decision to produce a good.
D
If a resource is easy to obtain, production costs will be high.

Explanation

A company needs resources such as materials and labor to make a good. When a needed resource is difficult to obtain, the company may have to pay more for it, raising production costs. Therefore, “If a resource is difficult to obtain, production costs will be high” best describes the role of resource availability.

AI-written and checked against the verified answer.

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