During the course of a week, McDonald's has enough time to hire or layoff workers, but it does not have enough time to expand its kitchen or add an additional seating area. In this situation, McDonald's:
A. has no fixed costs.
B. is in the short run.
C. suffers an economic loss.
D. earns a large profit.
Answer: B
You might also like to view...
Refer to Figure 13-9. Which of the graphs in the figure depicts a monopolistically competitive firm that is earning economic profits?
A) Panel A B) Panel B C) Panel C D) Panel A and Panel B
An example of ad valorem taxation is
A) a luxury tax. B) the corporate profit tax. C) the personal income tax. D) the Social Security tax.
Explain the concept of sunk costs with an example
A significant advantage to being a member of a trade bloc is
A. reduced or eliminated tariffs among member countries. B. reduced tariff rates only for the largest member countries. C. higher tariff collections from member countries. D. None of these; there is no economic advantage to a trade bloc.