Which of the Following Is Likely to Have the Most

question 166

Multiple Choice

Which of the following is likely to have the most price inelastic demand?

• A)chocolate
• B)Godiva chocolate
• C)Hershey's chocolate
• D)All three would have the same elasticity of demand because they are all related.

---

Definitions:

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, indicating the financial gain in excess of opportunity costs.

Accounting Profit

The total revenue of a firm less its explicit costs; the profit (or net income) that appears on accounting statements and that is reported to the government for tax purposes.

Diseconomies of Scale

A situation in which a company or business grows so large that the costs per unit increase, leading to decreased efficiency.

Large-Scale Business

A business that operates on a large scale, often involving extensive operations, significant capital, numerous employees, and a wide geographical reach.