Allison and Cate Are Close Friends, but They Only See

question 51

Multiple Choice

Allison and Cate are close friends, but they only see each other twice a year because they are busy with work and their families. Which unique characteristic of friendships does this exemplify?

• A) Friends typically treat each other as equals.
• B) People can have as many friends as they want or have time for.
• C) Friends are relatively free to design relationships that suit their needs.
• D) Friends often do not help one another adjust to new challenges.

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Definitions:

Capital Requirements

The total amount of capital needed for a business to carry out its operations, including costs for assets, staffing, and day-to-day expenses.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Undifferentiated Products

Goods or services that are viewed as interchangeable with others in the market, lacking distinct features to stand out from competitors.

High Switching Costs

High switching costs are barriers that prevent customers from changing products or services, due to financial, emotional, time-related, or effort-based factors.