Agave, Six Feet Under, Globe, Silk, Sotto Sotto and Zocalo are all restaurants in Atlanta. Suppose at the profit maximizing quantity, Zocalo charges $22 for each dinner entrée, and its ATC is equal to $24. What should Zocalo do?
A) Cannot determine whether Zocalo should stay open or shut down in short run, but Zocalo should go out of business in the long run.
B) Produce in the short run and go out of business in the long run.
C) Shut down in the short run and go out of business in the long run.
D) Cannot determine whether Zocalo's should stay open or shut down in the short or long run.
A
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a. The producer must face an inelastic demand curve. b. The producer must face a downward-sloping demand curve. c. There must be at least two identifiable classes of consumers with different price elasticities of demand. d. The producer must be able, at little cost, to distinguish between the different classes of buyers. e. It must be impossible for one buyer to resell to another.
The income-expenditure model of real GDP determination is due to the work of
A. Adam Smith. B. John Maynard Keynes. C. Roger Miller. D. Milton Friedman.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Which of the following are required for economic growth?
i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices A) i only B) ii and iii C) ii only D) i and iii E) i and ii