Betta Inc Has Discovered That One of Its Products Is

question 45

Multiple Choice

Betta Inc has discovered that one of its products is potentially dangerous. It therefore pulled that product from the store shelves before any were sold. It has employed a form of risk management known as

• A) risk avoidance.
• B) risk destruction.
• C) risk denial.
• D) risk acceptance.
• E) risk reduction.

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Definitions:

Economic Profit

The financial gain obtained after subtracting both explicit and implicit costs from total revenue, reflecting the true profitability of a business.

Competitive Equilibrium

A market condition where supply meets demand, with prices stabilizing at a level where the quantity demanded equals the quantity supplied.

Monopoly

A market structure characterized by a single seller or producer supplying a unique product or service, with no close substitutes, giving them significant control over the market price.

Usury Law

Regulations governing the maximum interest rates that can be charged on loans, aimed at preventing lending practices deemed exploitative.