Defining the Firm's Industry Is Something That Can Be Taken

question 58

True/False

Defining the firm's industry is something that can be taken lightly; the small business owner really needs to learn only about the local market.Industry information can be learned later.

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Definitions:

Private Good

A type of good that is characterized by excludability and rivalry, meaning it can be consumed by only one person at a time.

Excludable

A characteristic of a good or service that allows owners or producers to prevent others from using it without paying for it.

Rival

An entity engaged in competition for the same objective or for superiority in the same field.

Public Good

Goods that are non-excludable and non-rivalrous, meaning that individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.