Are all constraints faced by firms binding? That is, they cannot be altered or relaxed. Discuss. No are they are not - Culture can be changed by hiring new people - Resource constraints can be changed - finding new sources, paying higher prices - Production functions - develop or acquire new technology - Rules, laws, regulations can be changed through lobbying - Debt and loan covenants - increase and use retained earnings (equity) - Competitor strategies - create competitive advantage to become leader instead of follower