Which of the Following Is Not One of the Principal

question 127

Multiple Choice

Which of the following is not one of the principal components of strategic significance in the PESTEL analysis?

• A)political factors including the extent to which government intervenes in the economy
• B)economic conditions that include the general economic climate and specific factors such as interest rates, inflation rate, and unemployment rate, as well as conditions in the stock and bond markets that can affect consumer confidence
• C)sociocultural forces that include societal values, attitudes, cultural factors, and lifestyles that impact business
• D)technological factors that include the pace of change and technical developments that have the potential for impacting society
• E)environmental forces that include the competitive structure, the degree of industry fragmentation, and the mobility barriers that inhibit business

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the profitability of a business beyond basic financial gains.

Monopolistically Competitive

Pertaining to a market scenario characterized by many sellers offering differentiated products or services, creating a competitive atmosphere.

Marginal Cost

The growth in overall expenses resulting from the manufacture of an extra unit of a product or service.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.