According to the Textbook, What Should a Business Owner Do

question 74

Multiple Choice

According to the textbook, what should a business owner do with excess inventory?

• A) cut prices on the product to increase its sales
• B) donate the products and get a tax write-off
• C) throw the excess away
• D) throw a party
• E) raise prices and sell the product as a premium product

---

Definitions:

Conditions of Entry

Factors that determine the ease or difficulty with which new competitors can enter an industry or market, affecting competition and market dynamics.

Market Model

A conceptual framework depicting how various economic players interact within a market to determine prices and quantity of traded goods or services.

Pure Monopoly

A market structure where a single supplier has exclusive control over a product or service, with no close substitutes.