Small Businesses, According to the Small Business Administration, Employ More

question 73

True/False

Small businesses, according to the Small Business Administration, employ more than 90 percent of the private workforce in the United States and are responsible for 85 percent of all business innovations.

Recognize the limitations of concentration ratios and the Herfindahl index in capturing market dynamics.

Understand how import competition affects domestic market concentration.

Identify the conditions under which an industry can be classified as oligopolistic based on concentration measures.

Understand the concept of oligopoly and its implications for market behavior and outcomes.

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Definitions:

Gift

An item given to someone without the expectation of payment or anything in return.

Water and Diamond Paradox

A classic economic paradox questioning why diamonds are more expensive than water, despite water being essential for survival and diamonds not.

Product Usefulness

The degree to which a consumer believes a product will be able to satisfy their needs, goals, and desires through its features and performance.

Consumer Spending

The total expenditure by households and individuals on goods and services within a specific time period.