Uncertainty Is Different from Risk

question 102

True/False

Uncertainty is different from risk.

---

Definitions:

Inelastic Demand

A situation where the demand for a product does not change significantly with a change in price.

Marginal Revenue

The rise in income achieved by selling an extra unit of a product or service.

Price Searcher

A seller that determines the selling price of its product or service based on market conditions, demand, and competition, instead of adhering to a market dictated price.

Marginal Revenue

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