Clashes with security forces continue in Ramallah

The video introduces the concept of a firm, exploring its definition and significance in business.

What is a fundamental characteristic of a firm?

• It does not aim to make a profit.

• It is an entity that produces goods or services.

• It operates independently of the market.

• It is a non-profit organization.

How do firms typically impact the economy?

• By increasing inflation rates.

• By contributing to economic growth.

• By reducing employment opportunities.

• By limiting consumer choices.

What role do firms play in a market economy?

• They eliminate competition.

• They are the primary producers of goods and services.

• They act as regulators.

• They control government policies.

What is one way firms remain competitive in the market?

• By increasing prices arbitrarily.

• By innovating and improving efficiency.

• By reducing product quality.

• By ignoring consumer demands.

Which of the following is NOT a strategic decision made by firms?

• Expanding into new markets.

• Setting competitive prices.

• Ignoring market trends.

• Investing in research and development.