Innovation Is Possible in Small Business Because They ______

question 65

Multiple Choice

Innovation is possible in small business because they ______.

• A) have the funds to turn new ideas into large-scale, profitable ventures
• B) employ highly intelligent, motivated people
• C) provide fertile ground for new ideas
• D) work harder

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Definitions:

MR

Stands for Marginal Revenue, which is the additional income earned from selling one more unit of a good or service.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit costs and opportunity costs.

Perfectly Competitive

A market structure where many firms sell identical products, entry and exit are easy, and no single seller can influence the market price.

Market Price

The present cost for purchasing or selling an asset or service within a specific market.