Which of the following is an example of a firm producing multiple products?

• A. A wheat farm that only grows wheat
• B. A bakery that sells both bread and cakes
• C. A gas station that only sells gasoline
• D. A shoe store that only sells sneakers

Answer: (B)

Verified step by step guidance

1. Understand the concept of a firm producing multiple products: This means the firm offers more than one distinct good or service to the market.
2. Analyze each option to identify if the firm produces more than one product:
3. Option 1: A wheat farm that only grows wheat produces a single product (wheat).
4. Option 2: A bakery that sells both bread and cakes produces multiple products (bread and cakes).
5. Option 3: A gas station that only sells gasoline produces a single product (gasoline), and Option 4: A shoe store that only sells sneakers produces a single product (sneakers). Therefore, the bakery is the example of a firm producing multiple products.