A Business Model

question 23

Multiple Choice

A business model

• A)is only important for startups with a large amount of uncertainty.
• B)is intended to provide evidence on whether a concept is viable,not if it can be profitable.
• C)is made up of a revenue model,a cost structure,and key resource requirements.
• D)forces the entrepreneur to be more disciplined about financial projections.

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Definitions:

Marginal Productivity

The additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.

Fixity

In economics, refers to the inelasticity or immobility of certain factors, like land or capital, which can limit responsiveness to changes in market conditions.

Long Run

A period of time sufficient for all adjustments to be made in an economy or market, considering all possible changes in production.

Average Costs

The total cost of production divided by the number of units produced, used to determine the average expense per unit.