According to the Definition of Entrepreneur Given in Chapter 1

question 100

True/False

According to the definition of entrepreneur given in Chapter 1, owner-managers who buy out founders of existing firms may be classified as entrepreneurs.

---

Definitions:

Short Run

A period in which at least one factor of production is fixed, limiting the ability of firms to adjust to market changes.

Perfectly Competitive Market

A theoretical market structure where many buyers and sellers trade homogeneous products, and no single participant can influence the price.

Marginal Costs

The price increase resulting from the creation of an additional product or service unit.

Average Variable Costs

The total variable costs divided by the quantity of output produced, representing the variable cost per unit of output.