Which One of the Following Is the Best Example of Systematic

question 37

Multiple Choice

Which one of the following is the best example of systematic risk?

• A)there is a shortage of nurses
• B)a fire destroys a warehouse
• C)gas prices rise sharply
• D)the cost of sugar increases
• E)two firms merge their operations

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Definitions:

Demand Function

A mathematical function showing the relationship between the quantity demanded of a good and its price, holding other factors constant.

Reaction Function

The strategic response of one player in a game to the actions of another, typically used in the context of oligopoly market structures.

Marginal Cost

The increase in total production costs that comes from making one additional unit of a product.

Demand Function

A mathematical representation that describes the relationship between the quantity of a good demanded and its price, along with other determinants.