Susan Bize Owns a Home in Edmond,Oklahoma

question 68

Multiple Choice

Susan Bize owns a home in Edmond,Oklahoma.She has a coffee maker in the home that has been recalled because it is likely to start fires.The coffee maker is an example of a:

• A)peril.
• B)hazard.
• C)risk.
• D)premium.
• E)deductible.

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Definitions:

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, remaining constant regardless of business activity volume.

Patent

A legal document granting an inventor exclusive rights to manufacture, use, or sell an invention for a certain number of years.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period of time.

Marginal Cost

The increase in total cost that arises from an extra unit of production.