A Petroleum Refinery in the Gulf Region Is Forced to Shut

question 75

Multiple Choice

A petroleum refinery in the Gulf region is forced to shut down for several months because of hurricane damage. This is an example of

• A) market risk.
• B) speculation.
• C) event risk.
• D) business risk.

---

Definitions:

Demand Schedule

A chart displaying how much of a product consumers are ready and able to buy at different price points.

Maximize Profits

Refers to strategies or actions undertaken by a business or enterprise aimed at increasing the difference between its total revenues and total costs.

Marginal Revenue

The additional income generated from selling one more unit of a product or service.

Nondiscriminating

Nondiscriminating implies an equal treatment or consideration without bias toward race, gender, age, or other differentiating characteristics.