Which One of the Following Combinations of Firms Would Benefit

question 63

Multiple Choice

Which one of the following combinations of firms would benefit the most through the use of complementary resources?

• A)a ski resort and a travel trailer sales outlet
• B)a golf resort and a ski resort
• C)a hotel and a home improvement center
• D)a swimming pool distributor and a kitchen designer
• E)a fast food restaurant and a dry cleaner

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Definitions:

Economic Profit

The financial discrepancy that arises from subtracting a business's comprehensive expenditures, including direct and indirect costs, from its total income.

Short Run

A time period in economics during which at least one input is fixed and cannot be changed by the firm.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies with the level of production.

Average Variable Cost

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