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:

Functional Needs

The practical or utilitarian requirements that a product or service must satisfy for the consumer, such as durability, convenience, and efficiency.

Retain Loyal Customers

Strategies or practices aimed at keeping customers who repeatedly buy or use a brand's products or services.

Profit Margins

The percentage of revenue that remains as profit after all expenses have been deducted from total sales.

Performance Risk

The potential for a purchased product or service to fail to meet expected performance levels, causing the buyer dissatisfaction.