Steve Has Built an Online Shopping Website and He Would

question 47

Multiple Choice

Steve has built an online shopping website and he would like to increase his website ranking in the search results.You are his consultant.Which of the following would you recommend for him to help achieve his goal?

• A) Increase the number of products
• B) Offer a discount to shoppers visiting his site
• C) Offer a variety of online payment options
• D) Link his website to other popular websites

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Definitions:

Monopolistically Competitive Firm

A type of firm in a market structure where many companies sell products that are similar but not identical, and each has some control over its price.

Monopolistic Competition

A market structure characterized by the presence of several firms that sell similar, but slightly differentiated, products and services where each has some control over its prices.

Zero Economic Profits

A situation in perfectly competitive markets where firms earn just enough revenue to cover their total operating costs, leaving no supernormal profit.

Positive Economic Profits

The situation in which a firm's total revenues exceed its total costs, including both explicit and implicit costs, signaling that the firm is doing better than the next best alternative.