Statistics on Small Business Failure Rates Indicate That 60 to 80

question 79

True/False

Statistics on small business failure rates indicate that 60 to 80 percent of new businesses fail in their first five years of operation.

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Definitions:

Marginal Cost

The increase in total production cost that arises from producing one additional unit of a good or service.

Public Good

A product or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Nonexcludable

A characteristic of a good where it is not possible to prevent individuals from accessing or consuming the good.

Nonrival Consumption

A situation where one individual's consumption of a good does not reduce the amount available for consumption by others.