An example of this I see happening a lot is with Korean BBQ places They usually

An example of this i see happening a lot is with

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running the business. An example of this I see happening a lot is with Korean BBQ places. They usually open form 9am-3pm and close for 2-3 hours and reopening at 5pm-10pm for dinner time. The reason why these businesses do this is because the busiest times is lunch and dinner time. On the other hand, if that business does decide to shut down, and for that decision to be final there must be certain circumstances. These certain circumstances for the business of close permanently is due to bankruptcy. As learned in class that there is an option offered by the U.S. government, a bail out option for large companies like GM Motors. But for many businesses in the U.S. that’s not the case because they are relatively small. Another reason for a business’s permeant close is because the owner of the business cannot pay for the expenses of running the business like the variable and fixed costs. Another reason is when the revenue is constantly lower than the cost of running the business and the owner absolutely can’t afford to keep the business running. An example of this happening is the grocery store in my city. They can’t afford to keep the business running because they get very few customers. The reason for this is because Walmart and Amazon take away all their business. Question 2-1
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I do not agree with the question “Ninety percent of new products fail within two, years-so you shouldn’t be eager to innovate”. The reason for my belief is because in the short run businesses are fixed and in the long run they are variable. There is a constant changing industry too. With these factors I think it is a good idea to innovate. It would be better to innovate because it will help the business keep up with the demands in the future. In the long run its not fixed so it’s easier to innovate rather than not. If a business does not innovate then the business loses the opportunity to conform to the consumers needs and demands. Q 2-2 The different cost in manufacturing affect the removal of patens because patens must be paid for, raising manufacturing cost. There are two types of patents, one that has a fixed cost and one that has a volume-based cost. For the volume-based cost, the more you pay the more you
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