Small and Medium-Size Business Owners Need to Assess and Anticipate

question 38

Multiple Choice

Small and medium-size business owners need to assess and anticipate the changes which are occurring:

• A) within their markets
• B) with the needs for their products
• C) with new opportunities
• D) with their suppliers
• E) a), b) and c)

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Definitions:

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in particular, every good or service is produced up to the point where the last unit provides a utility to consumers equal to the cost of producing it.

Productive Efficiency

A situation in which a good or service is produced at the lowest possible cost.

Monopolistic Producer

A single producer that has control over the market for a product or service, often characterized by a lack of close substitutes.

Competitive Firm

A company that operates in a market with many competitors, where prices are determined by supply and demand.