The Disadvantages of Small Businesses Include All of the Following

question 136

Multiple Choice

The disadvantages of small businesses include all of the following except

• A) limited potential for growth.
• B) a high risk of failure.
• C) no opportunity to support your family.
• D) limited ability to raise capital.
• E) limited advancement opportunities for employees.

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Definitions:

Decreasing-Cost Industry

An industry where the cost per unit of output decreases as the scale of production increases is known as a decreasing-cost industry.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing for the adjustment of all inputs, leading to optimal allocation of resources in the market.

Increasing Cost Industry

An industry in which production costs increase as output expands, typically due to factors such as input limitations and increased demand for inputs.

Long-Run Supply Curve

A curve showing the relationship between price and quantity supplied that takes into account all possible adjustments in inputs and outputs.