____________ Is an Arrangement by Which the Owner of a Product

question 112

Multiple Choice

____________ is an arrangement by which the owner of a product or service allows others to purchase the right to distribute the product or service with help from the owner.

• A) Franchising
• B) Licensing
• C) Exporting
• D) Greenfield venture
• E) Joint venture

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Definitions:

Profit-Maximizing

Refers to the process or strategy by which a firm selects outputs at which its profits are maximized, achieved by equating marginal revenues to marginal costs.

Marginal Cost

The cost of producing one more unit of a good or service.

Socially Efficient

A condition where resources are allocated in a way that maximizes the overall benefit to society, taking into account all costs and benefits.

Marginal Cost

The additional cost incurred by producing one more unit of a good or service.