Which Would Tend to Result in a Greater Level of Entrepreneurship

question 29

Multiple Choice

Which would tend to result in a greater level of entrepreneurship?

• A)Fewer numbers of incumbents.
• B)Capital-intensive industries.
• C) Weak bargaining power of suppliers.
• D) Ability to reduce the bargaining power of buyers.

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Definitions:

Laspeyres Price Index

a measure of the change in the cost of purchasing a fixed basket of goods and services, relative to the cost of the same basket in a base period.

Demand Function

A mathematical expression showing the relationship between the quantity demanded of a good and its price, along with other determinants like income and prices of related goods.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute one good for another.

Income

The money received by an individual or entity, typically measured over a certain period, for labor, services, or through investments.