In a Joint Venture Between Large and Small Businesses, Large

question 147

Multiple Choice

In a joint venture between large and small businesses, large businesses can provide all of the following EXCEPT

• A) sales staff.
• B) research staff.
• C) financial resources.
• D) distribution channels.
• E) top level management.

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Definitions:

Market Failure

The failure of a market to be efficient; when the individual pursuit of self-interest leads to bad results for society as a whole.

Market Power

The ability of a producer to raise prices.

Externalities

External benefits and external costs.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use, and where use by one individual does not reduce availability to others.