Consider the Following Scenario When Answering the Following Two Questions

question 56

Multiple Choice

Consider the following scenario when answering the following two questions.
Charlie's Churros is a perfectly competitive firm that sells desserts in Houston, Texas. Charlie's Churros currently is taking in $40,000 in revenues and has $15,000 in explicit costs and $25,000 in implicit costs.
-Charlie's Churros' economic profits are:

• A) $40,000.
• B) $15,000.
• C) $25,000.
• D) $0.
• E) $80,000.

---

Definitions:

Participative Leader

A person in charge who shares decision making with group members.

Morale

Refers to the emotional or mental condition with respect to confidence, enthusiasm, and loyalty of a person or group, especially in the context of work or team environments.

Poorly-Motivated

Describes individuals or groups that lack the drive, enthusiasm, or interest to perform tasks or pursue goals.

Path-Goal Theory

A leadership theory that suggests leaders adjust their styles depending on the situation and characteristics of followers to guide them in achieving their goals.