To Protect His Poultry from Meteorites,the Gentleman Farmer Made Hard

question 3

Multiple Choice

To protect his poultry from meteorites,the gentleman farmer made hard hats for each bird and installed a meteor detection system that opened umbrellas throughout the yard if a meteor were detected.The safety of his flock thus assured,the farmer was surprised when he read his latest issue of Risk Management Magazine and discovered that this event was:

• A)High in consequence and high in probability.
• B)Low in consequence and low in probability.
• C)Low in probability and high in consequence.
• D)High in probability and low in consequence.

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Definitions:

Marginal Revenue Product

The extra revenue generated by employing one more unit of a factor, such as labor or capital.

Marginal Revenue Product

The additional revenue generated from using one more unit of a resource.

Additional Revenue

The increase in income received from selling one more unit of a product or service.

Additional Unit

The next unit of production, referring to the increase in quantity by one unit.