Large Barriers to Entry in the Gas Station Business Explain

question 65

Multiple Choice

Large barriers to entry in the gas station business explain why the two only gas stations in a small town:

• A)can earn an economic profit in the long run.
• B)must produce at the minimum average total cost in the long run.
• C)have no fixed costs in the long run.
• D)must produce a level of output such that MR = MC to maximize their profit.

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Definitions:

Michael Dell

The founder and CEO of Dell Technologies, known for pioneering direct sales of personal computers.

Performance Judgments

Assessments made regarding an employee's work performance, often influencing decisions on promotions, pay, and continuation of employment.

Expectancy Theory

A motivational theory suggesting that an individual's effort level is based on their expectation of achieving desired performance outcomes and the value they place on those outcomes.

Self-Appraisals

The process where employees evaluate their own performance, strengths, and areas for improvement, usually as part of a performance review cycle.