Chapter 2 Delves into the Notion of Two Types of Economies

question 16

Multiple Choice

Chapter 2 delves into the notion of two types of economies with various perks and benefits - a managerial economy and an entrepreneurial economy. Which of the following terms are typically associated with a managerial economy?

• A) Centralization
• B) Decentralization
• C) Dynamism
• D) Predictability
• E) Improvisation
• F) Control
• G) Networking
• H)Experimentation
• I)Planning
• J)Large scale
• K)Stability
• L)Standardization
• M)Variation

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Definitions:

Short Run

A period in which at least one input, such as plant size or capital equipment, in the production process is fixed.

Long Run

A period in economic theory during which all inputs can be adjusted by firms, allowing them to fully adapt to changes in market conditions or to scale their operations.

Sales

The transactions or activities involved in selling goods or services in return for money or other compensation.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance premiums.