According to the Panel Study of Entrepreneurial Dynamics (PSED),when an Entrepreneur

question 22

Multiple Choice

According to the Panel Study of Entrepreneurial Dynamics (PSED) ,when an entrepreneur comes up with the idea from others,the single greatest idea source is from:

• A) discussions with friends and family.
• B) discussions with potential or existing customers.
• C) discussions with existing suppliers or distributors.
• D) discussions with potential or existing investors or lenders.

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Definitions:

Short Run

A period in which at least one input (e.g., capital) is fixed, limiting the capacity for output adjustment.

Long-Run Cost Function

An economic model that describes how production costs change over time as all inputs can be varied by the producer.

Marginal Cost Function

A mathematical relationship describing how the cost of producing one additional unit of output varies as production scale changes.

Optimal Output

The level of production that maximizes a firm's profit, where marginal revenue equals marginal cost.