Bob and Phyllis Cords Own Two Retail Stores,one in Madoc

question 104

Short Answer

Bob and Phyllis Cords own two retail stores,one in Madoc and one in Belleville.Alhough the towns are only 40 kilometres apart,the consumers at both stores are very different demographically.Bob and Phyllis alter the product offerings between both locations in an effort to cater to both demographic groups.This is an example of ________.

Recognize the different time horizons in market analysis and their implications for technology and product offerings.

Understand the role of entrepreneurs in the innovation process and the risks they bear.

Appreciate the worldwide duration of patents and their role in protecting innovations.

Understand the modern view of technological advance as an internal element of capitalism driven by profit motives and competition.

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Definitions:

Fixed Costs

Business expenses that are not affected by changes in the level of production or sales, such as rent and salaries.

Total Variable Costs

The sum of expenses that change directly with the level of output or production volume.

Average Fixed Cost

The total fixed costs of production divided by the number of units produced, indicating cost per unit.

Average Total Costs (ATC)

The total cost of production (fixed plus variable costs) divided by the total quantity of output produced.