Alfred Is Interested in Opening His Own Business,so He Pays

question 80

Multiple Choice

Alfred is interested in opening his own business,so he pays a visit to the local Small Business Administration (SBA) to learn more about the potential risks.He learns that about _____ percent of all small businesses fail within two years of opening.

• A)10
• B)20
• C)30
• D)50
• E)70

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Definitions:

Output Effect

The change in total revenue resulting from the production of additional units of output in a competitive market.

Jointly Maximize

A strategy or action designed to optimize two or more objectives or outcomes at the same time.

Marginal Cost

The cost added by producing one extra unit of a product or service.

Output Effect

The change in total revenue resulting from selling more units at a lower price, in the context of price elasticity of demand.