A Restaurant Sells a Large Soft Drink at a Fixed

question 151

Multiple Choice

A restaurant sells a large soft drink at a fixed price of $1.79.A term used by economists to describe the money received from the sale of an additional large soft drink is

• A)marginal revenue.
• B)gross earnings.
• C)pure profit.
• D)net benefit.

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Definitions:

Government Policy

A course of action or principle adopted or proposed by a government body or leader.

Free-Rider Problem

A situation in which individuals benefit from resources, goods, or services without paying for them, leading to under-provision or depletion of those resources.

Attracting Members

The process or strategies used by organizations to gain new members or participants.

Public-Interest Groups

Organizations that advocate for public welfare and common interests, affecting policy decisions without seeking profit.