Local Residents Have Always Thought the Mom-And-Pop Store on the Corner

question 68

Multiple Choice

Local residents have always thought the mom-and-pop store on the corner of Locust and Congress was a partnership between Mr.and Mrs.Davis.But Mr.Davis is the real owner.This probably means that the store is a

• A) limited partnership.
• B) sole proprietorship.
• C) corporation.
• D) cooperative.
• E) joint venture.

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Definitions:

Resource Prices

The cost associated with acquiring resources necessary for production, including raw materials, labor, and capital.

Increasing-Cost Industry

An industry where production costs begin to rise as the industry's output expands, often due to resource limitations or increased prices of inputs.

Minimum Long-Run ATC

The lowest point on the Average Total Cost curve when a firm operates in an efficient scale over the long term.

Increasing-Cost Industry

An industry in which production costs increase as industry output expands, often due to resource limitations or higher input costs.