In the WebHouse Example Included in Chapter 6, WebHouse Failed

question 4

Multiple Choice

In the WebHouse example included in Chapter 6, WebHouse failed because:

• A) it did not complete a feasibility analysis
• B) it did not write a complete business plan
• C) it couldn't motivate its suppliers or customers to participate at a sufficient scale to support the overhead of the business
• D) it charged too much for its services
• E) it failed to focus on developing a core strategy

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Definitions:

Producer Profits

The financial gain that producers receive from selling their goods or services, after subtracting production costs.

Resource Price

The cost associated with obtaining resources required for production, such as raw materials, labor, or capital.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to buy at a given price in a given time period.

Substitute Resources

Alternative resources that can be used in place of another for the production of goods and services.