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  1. Which of the following is a reason that your company might not want to increase its market share?
AThe market saturation for your product is low.
BMany of your company's competitors have bad reputations.
CYour company has a limited capacity for producing your product.
DThe price of your product is very competitive.
  1. As a factor of production, how is capital created?
ABy adding land to entrepreneurship
BBy adding human labor to land
CBy removing land from services
DBy using labor to create services

Verified Answer :

johnkellock
  1. C. Your company has a limited capacity for producing your product.

    2.     B. By adding human labor to land
jepessoa

Answer:

1: C) Your company has a limited capacity for producing your product.

2: B) By adding human labor to land

Explanation:

1: Most companies would be very happy and willing to increase their market share since they would sell a larger quantity of products or services. Usually the more you sell, the larger your profits. The only reason why a company might not want to increase its market share, or sell more products or services, is that they have reached their full production capacity. Once a company reaches it full production capacity, they must carry new investments in order to increase it, and that may require a lot of money.

2: capital is not only money, it is mostly machinery, tools, buildings, etc.

And how are machines and tools built?

Humans start to work and they use land (natural resources) to build machines and tools.

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