In the Case of a Retail Business Dependent on Drive-In

question 164

Multiple Choice

In the case of a retail business dependent on drive-in customers, the major cost disadvantage independent of scale would be

• A) favorable locations are not available.
• B) other competitors have proprietary product technology.
• C) access to raw materials is difficult.
• D) other competitors have government subsidies.

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Definitions:

Output Tax

A tax levied on the production or output of goods and services, often implemented to regulate or diminish the production of certain products.

Cost And Supply Curves

Graphical representations that show how the cost of producing a good and the quantity supplied vary with quantity produced.

Constant-Cost Industry

An industry in which the costs of production do not change as the industry's output changes.

Increasing-Cost Industry

An industry in which the costs of production increase as output expands, often due to factors like resource depletion or higher input prices.