Capital-Constrained Entrepreneurs Cannot Afford to Do Much Prior Analysis and Research

question 95

Multiple Choice

Capital-constrained entrepreneurs cannot afford to do much prior analysis and research because

• A) the affordability of properly conducted research is beyond the means at their disposal.
• B) the costs of any mistakes are lower than the risks of missing out on opportunistic actions.
• C) the limited profit potential and high uncertainty of the opportunity they usually pursue may make the benefits low compared to the costs.
• D) potential competitors could quickly discern the entrepreneurs' intentions and motives from their research.

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Definitions:

Socially Optimal

Pertains to a condition where resources are allocated in the most efficient manner from the perspective of society as a whole.

Pollution

The presence or introduction of harmful substances or contaminants into the natural environment, causing adverse effects.

Emissions Standard

Regulations that set limits on the amount of pollutants that can be emitted from sources like vehicles and factories.

Pollution

The contamination of the environment by harmful or poisonous substances, leading to detrimental effects on living organisms and the natural habitat.