New, Entrepreneurial Ideas Frequently Sprout from an Entrepreneur's Desire for a Product

question 21

True/False

New, entrepreneurial ideas frequently sprout from an entrepreneur's desire for a product that he or she cannot currently find in the market.

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Definitions:

Diminishing Returns

A principle stating that adding more of one factor of production, while holding others constant, will at some point yield lower incremental per-unit returns.

Short Run

A time period during which at least one input, such as plant size, is fixed and cannot be changed by the firm.

Average Total Cost Curve

A graphical representation showing the average total cost of producing various output levels, typically U-shaped due to economies and diseconomies of scale.

Total Cost

The aggregate cost involved in manufacturing goods or offering services, which covers both stable and changeable outlays.