When Jeff Bezos Launched Amazon

question 29

Multiple Choice

When Jeff Bezos launched Amazon.com,his idea of selling items he did not own from a website was unique.Which type of startup is this?

• A)New market idea
• B)New technology idea
• C)New benefit idea
• D)New product idea

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Definitions:

Fixed Cost

Costs that remain constant regardless of the amount of goods produced or sold, including rent, wages, and insurance premiums.

Sunk Cost

Costs that have already been incurred and cannot be recovered or refunded, and should not influence future business decisions.

Average Fixed Cost

The cost incurred for fixed inputs (rent, salaries) divided by the quantity of output produced, which decreases as production increases.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor, in contrast to fixed costs.