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New Projects or Products Can Have an Indirect Effect on the Firm

question 75

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New projects or products can have an indirect effect on the firm as well as a direct effect.Which of the following appears to be an indirect effect of launching a new product?


Definitions:

Circular-Flow Model

A diagram that visualizes the economy as consisting of households and firms interacting in the goods and services markets, and labor markets, showing how money flows through the economy.

Resource Market

A market in which households sell and firms buy resources or the services of resources.

Product Market

A market in which products are sold by firms and bought by households.

Tax Revenue

The income that is gained by governments through taxation.

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