1. Which of the following statements regarding factors of production is TRUE? A. Advanced factors are more likely to be resources than basic factors. B. Advanced factors are more likely to be endowments (purchase-able) than basic factors. C. Advanced factors are more likely to transform inputs into outputs than basic factors. D. Advanced factors are more likely to provide competitive advantage than basic factors. 2. In regard to value, price, and cost (for a product), which of the following is TRUE? A. Value is always greater than price. B. An increase in value increases product cost and reduces pricing options. C. Value is a measure of the utility that managers obtain from commercializing the product. The difference between value and price is consumer surplus