Theodore and janice have formed tj soft, an entrepreneurial venture to develop games and other kinds of software for consumers. theodore has just gotten wind from a highly reliable source that congress is likely to take action in the coming year to ban violent games. tj soft has several games that could be considered violent. which component of the external environment will affect tj soft the most in this situation?

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?