Chapter 7, Problem 6AA

To determine

To choose: The term that best completes the given sentence.

Answer to Problem 6AA

The term that best completes the given sentence is analysis.

Explanation of Solution

For the success in any field one should have adequate knowledge about the subject that is going to be carried out. So, in the matter of the business also entrepreneur needs to have information about factors of production before steps starting a work.

Analyzing the competition will help you analyze your startup. Business analyzes help to reduce risks and to better understand the consumers and the market conditions. Research also helps explain which distinguishes one from competition. Therefore, opening a business requires systematically analysis of the market for the potential product or service.

The correct answer is analysis.

Economics Concept Introduction

Introduction: In general, the section on market analysis will provide details on the industry, the target market, competition, and the plan to make space for own production.