For a Company Planning to Enter a Task Environment or Industry

question 23

Multiple Choice

For a company planning to enter a task environment or industry, the greater the economies of scale within that task environment,

• A)the higher will be the barriers to entry.
• B)the smaller will be the investment.
• C)the easier it will be to create brand loyalty.
• D)the higher will be tariff rates.

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Definitions:

Economic Systems

The structure and methods by which a society allocates resources and distributes goods and services among its population.

Business Risk

The potential for financial loss or failure in the operation of a company due to factors like market conditions, regulatory changes, or operational challenges.

Market System

An economic model where investment, production, and distribution decisions are influenced by supply and demand, with the prices of goods and services being set in a free pricing system.

Circular Flow Diagram

A visual model used in economics to show how money moves through the economy in a circular manner between producers and consumers.