Final answer:
The correct option is A). A Business Model encapsulates the strategies a company uses to generate revenue and manage expenses. Examples of features that can contribute to a robust business model include patents, price strategies, and a strong brand reputation. These elements are crucial in understanding how firms interact with consumers and resources in an economy.
Step-by-step explanation:
A Business Model represents a group of common characteristics and methods of doing business to generate sales revenues and reduce expenses. When discussing competitive factors that allow firms to sustain profits, examples like a patented invention, a well-established reputation for slashing prices in response to new entry, and a well-respected brand name are representative. The described interaction between households and firms in providing labor and resources for wages and other factor payments, and purchasing goods and services reflects the basic cycle of an economy within the markets for goods and services, and the market for inputs (factors of production).