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Andrea Has Just Opened a New Service Business Called Paws

question 142

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Andrea has just opened a new service business called Paws n' Claws, which provides dog grooming and doggie day care. Andrea has done research about the role dogs play in today's culture, particularly for those people who do not have children. She knows that some of these people represent a target that is urban, professional, and who travel frequently. Andrea's business is likely to have a _____ and she will probably refer to the dog owners as ___.


Definitions:

Short Run

A period in which at least one factor of production is fixed and cannot be changed, limiting the firm's ability to adjust fully to market changes.

Monopolistically Competitive

A market structure characterized by many sellers offering differentiated products, allowing for some degree of market power.

Fixed Costs

Costs that do not vary with the level of output or production, such as rent, salaries, and equipment maintenance.

Short Run

A period in economics during which some factors of production are fixed, affecting output levels and costing.

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