Which of the following is a key difference between the economic activities of government and those of private firms?
What will be an ideal response?
Government has the legal right to force people to do things; private firms do not.
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Normal profit is a term for:
a. explicit profit. b. the minimum profit to keep a firm in operation. c. the accounting profit forgone. d. pure economic profit.
Which of the following terms describes the process wherein many of the different stages of producing a good happen in different geographic locations?
a. supply chain management b. splitting up the supply chain c. splitting up the value chain d. value Chain management
Three landscapers, Allen, Betty, and Christina, are visiting the lawn and garden supply store. Allen is choosing between a mower with a 40-inch blade and a mower with a 28- inch blade. Betty is picking up her mower, which was in for scheduled maintenance. Christina is putting up a For Sale sign advertising her equipment and list of customers. Who is operating in the long run?
a. Allen and Christina b. Betty and Christina c. Allen only d. Betty only e. Christina only
If substantial up-front investments in advertising campaigns become essential to a successful market entry, the market is most likely to be:
A. a perfectly competitive market. B. a monopoly. C. a monopolistically competitive market. D. an oligopoly.