When Businesses Bring Products and Services to the Many People

question 41

Multiple Choice

When businesses bring products and services to the many people in the world who have traditionally been beyond the reach of global commerce,they are said to be:

• A) Serving the top of the triangle.
• B) Reaching the bottom of the globe.
• C) Serving the bottom of the pyramid.
• D) Focusing on the ends of the supply chain.

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Definitions:

Total Cost

The sum of all the expenses incurred in the production of a good or service, including both fixed and variable costs.

Economic Profit

A rephrasing of economic profits; it represents the financial gain exceeding the total costs, considering both explicit and implicit costs.

Per-unit Profit

The profit earned by a company for each unit of product sold, calculated by subtracting the cost of producing one unit from the selling price of one unit.

Purely Competitive Firm

A business that operates in a market where there are many buyers and sellers, the products are homogenous, and there are no barriers to entering or exiting the market.