If Panera Bread's "clean food" strategy succeeds and customers are willing to pay higher prices for their menu items, the company will
A) no longer be monopolistically competitive.
B) continue to earn substantial economic profits in the long run.
C) eventually suffer economic losses, as do all fast-casual restaurants.
D) likely attract competitors that offer the same kind of food, and all else equal, eventually economic profits will be competed away.
Answer: D
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A) less, rise B) less, fall C) more, rise D) more, fall
The after-tax income received by the household sector is known as ________
A) disposable income B) retained earnings C) net national product per capita D) Gross Domestic Product
A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7 . Assume that the economy is initially in equilibrium. What will happen to the equilibrium real GDP if a tourist visits the country and spends $100 that she brought with her?
a. It will not change. b. It will increase by $100. c. It will increase by $200. d. It will increase by $143. e. It will increase by $90.
U.S. government bonds held by commercial banks are: a. government assets and commercial bank assets
b. government assets and commercial bank liabilities. c. government liabilities and commercial bank assets. d. government liabilities and commercial bank liabilities.