1.1 An Overview of Small Business Economics

Discussion Question 1

Two (2) key factors in determining the cost-effectiveness and potential profitability of bringing any product or service to market are supply and demand and price determination.

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a. What is learned from a well-formulated supply and demand curve analysis and how does this information help determine optimum production rates for maximum profitability?

b. What is the correlation between employee benefits and return on investment assets, return on equity, and return on sales?

c. How can the inability to compete profitably on price be overcome?

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