Internal Forces for Change Include ______________ and ______________

question 94

Short Answer

Internal forces for change include ______________ and ______________.

Calculate and analyze firm profitability under different economic conditions.

Utilize the North American Industry Classification System (NAICS) codes for industry analysis.

Evaluate industry performance using return on equity (ROE) and other financial metrics.

Understand investment strategies related to the industry life cycle stages.

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Definitions:

Average Product

The yield generated for every unit of a production input, determined by dividing the overall output by the amount of the input used.

Labor

The human effort, whether physical or mental, that is used in the production of goods and services.

Law of Diminishing Returns

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

Marginal Product

The additional output produced as a result of utilizing one more unit of input, holding all other inputs constant.