Which of the Following Industries Normally Has Relatively Low Business

question 49

Multiple Choice

Which of the following industries normally has relatively low business risk?

• A)Durable goods manufacturers, such as automobile manufacturers
• B)Firms that produce staple goods, such as grocery stores and utility companies
• C)Cyclical companies, such as construction companies
• D)Firms that engage in fairly risky research and development, such as pharmaceutical research companies.
• E)Small, single-product firms, especially those that sell primarily to a single customer

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Definitions:

Economy's Growth

The increase in the market value of the goods and services produced by an economy over time, typically measured as the percentage increase in real gross domestic product (GDP).

Total Output

The complete quantity of goods or services produced by a firm or within an economy during a given period.

Purely Competitive

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.