A profit-maximizing, monopolistically competitive restaurant serves 60 burgers a day at a total cost of $180 and earns a total profit of $180. In the long run, everything else equal, the
A. restaurant will charge more than $6 per burger.
B. restaurant’s average total cost will rise and its total revenue will fall.
C. restaurant will sell more burgers at a lower average profit per burger.
D. All of the responses are correct.
Answer: B
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In the early 1950s, economist William Baumol demonstrated that a lower interest rate ________ the demand for money in a model without bond speculation ________ a "broker's fee" for conversions between money and bonds
A) raises, and without B) raises, but with C) lowers, and without D) lowers, but with E) does not affect, and without
The distinction between sunk and incremental costs is most helpful in answering which question?
A) How many more people should be added to the production process? B) What is the correct price to charge? C) Should we begin to build a new factory? D) Should we continue developing a new software application that we began last year?
The theory of consumer choice is to demand as the theory of
a. public goods is to supply. b. oligopoly is to supply. c. the competitive firm is to supply. d. comparative advantage is to supply.
Tax loopholes increase the progressivity of the federal income tax.
Answer the following statement true (T) or false (F)