The Number of Competitors and Their Proximity Influences What a Small

question 17

Multiple Choice

The number of competitors and their proximity influences what a small business owner can charge because the competition represents

• A) Substitute choices to the customer
• B) A better product for the consumer
• C) Better quality as perceived by the consumer
• D) Less expensive products

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Definitions:

Base Period

A specific time period used as a reference point to measure changes in economic indicators or indexes.

Quantity

The quantity of a tangible or intangible good or service.

Frictional Unemployment

A type of unemployment that occurs when people are temporarily between jobs or are waiting to start new jobs, often seen as a natural part of the labor market.

Labor Force

consists of all the people who are of working age, able and willing to work, and actively seeking employment or are currently employed.