Darlene Runs a Fruit and Vegetable Stand in a Medium-Sized

question 52

Multiple Choice

Darlene runs a fruit and vegetable stand in a medium-sized community where there are many such stands.Her weekly total revenue equals $2,000.Her weekly total cost of running the stand equals $3,500,consisting of $2,500 of variable costs and $1,000 of fixed costs.An economist would likely advise Darlene to:

• A) shut down as quickly as possible in order to minimize her losses.
• B) keep the stand open because it is generating an economic profit.
• C) keep the stand open for a while longer because she is covering all of her variable costs and some of her fixed costs.
• D) keep the stand open for a while longer because she is covering all of her fixed costs and some of her variable costs.

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Definitions:

Corporate Philanthropy

Involves companies undertaking initiatives to promote welfare through donations and community involvement.

Ethical Marketing

Marketing practices that adhere to ethical standards and values, prioritizing fairness, honesty, and responsibility towards consumers and society.

Stakeholder Responsibility

The obligation of an organization to act in the best interests of the diverse group of individuals or groups who have a stake in the business outcomes, including employees, customers, suppliers, and the community.

Green Tourism

Travel practices and tourism activities that prioritize sustainability, conservation of natural resources, and environmentally friendly practices.