Gnome company is deciding whether to continue to manufacture a component or to buy the component from a supplier. which of the following is relevant to this decision?
a. the insurance on the manufacturing facility that will continue regardless of the decision
b. the potential uses of the facilities that are currently used to manufacture the component
c. fixed costs that do not differ between the alternatives
d. the cost of the equipment that is currently being used to manufacture the component

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?