The Shopkeeper's Privilege

question 2

Multiple Choice

The shopkeeper's privilege

• A) permits a shopkeeper to stop and detain a suspected shoplifter for a reasonable period of time.
• B) permits shopkeepers to keep lost merchandise.
• C) allows shopkeepers to bring home 10 percent of goods at cost.
• D) authorizes shopkeepers to spy on customers in dressing rooms.

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Definitions:

Production

The process of creating, growing, manufacturing, or improving goods and services.

Total Variable Cost

The sum of expenses that vary directly with the level of production or output, such as materials and labor.

Total Fixed Cost

The sum of all costs required to produce a good or service that do not change with the level of output.

Marginal Revenue (MR)

The additional revenue that a firm receives from selling one more unit of a good or service.