According to the Textbook, Which Is the Proper Sequence of Events

question 54

Multiple Choice

According to the textbook, which is the proper sequence of events in developing successful business ideas?

• A) opportunity recognition, feasibility analysis, development of a business plan
• B) feasibility analysis, opportunity recognition, development of a business plan
• C) development of a business plan, opportunity recognition, feasibility analysis
• D) feasibility analysis, development of a business plan, opportunity recognition
• E) development of a business plan, feasibility analysis, opportunity recognition

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Definitions:

Consumer Surplus

The difference between the aggregate willingness to pay by consumers for a good or service and the aggregate actual payment.

Deadweight Loss

An economic inefficiency caused by a disruption in market equilibrium, leading to a loss of societal welfare.

Consumer Surplus

The disparity between the ideal total expenditure consumers are willing to make on a good or service and the real expenditure.

Producer Surplus

The distinction in financial terms between what producers expect to receive for a product or service and the actual revenue attained.