One Advantage of Buying an Existing Business Is

question 107

Multiple Choice

One advantage of buying an existing business is:

• A)you always get the best location.
• B)the opportunity to participate in a national advertising campaign.
• C)equipment is installed and production capacity is known.
• D)easy implementation of innovations and changes from past policies.

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Definitions:

Consumer Good

Goods that are produced for personal consumption by the general public.

Inelastic

Describing demand that is relatively unresponsive to changes in price.

Quantity Demanded

This is the total amount of a good or service that consumers want to buy at a specific price level, within a certain period.

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service.