Answer to Question #238790 in Microeconomics for Ten

Question

Questions to be ask while interviewing an startup owner

Three questions related to economic unit and strategies to deal with competition and to be in long run.

Three questions related to unit economic and break even point .

Two questions based on cost curve.

Answer 1

Part 1

What might be the biggest risk for the organization?

What is the company's view of success?

What does the current growth look like?

What's the current Runway, and what are future funding plans?

part 2

Three questions related to economic unit.

• What will the company produce?
• How will the company produce?
• How will the output be distributed after production?

There are three strategies of dealing with competition as described below;

Cost-leadership strategy.

Big companies use this strategy to attain the lowest distribution and production costs by use of economies of large-scale operations. companies that adopt this type of strategy tend to have strength in purchasing, distributing, and manufacturing.

Differentiation strategy

This strategy targets value and quality-seeking customers. It majorly focuses on a smaller part of the current offerings.

Focus strategy.

This strategy focuses on a certain small segment of the market to counteract competition. The company may use this strategy to offer the lowest prices.

Part 3

Three questions related to unit economic and break-even point.

• How much is the fixed cost?
• What is the total amount of revenue?
• What is the variable cost per unit?

Part 4

Two questions based on the cost curve.

• How does the marginal cost behave?
• How does the average total cost curve look like?