A restaurant, which operates in a perfectly competitive market, is evaluating whether it should serve breakfast on a daily basis. It would choose to do this when its revenues cover its variable costs
a. True
b. False
Indicate whether the statement is true or false
True
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When the LM curve is horizontal,
A) fiscal policy has no impact on equilibrium income. B) fiscal policy has no impact on the equilibrium interest rate. C) the economy is at full employment. D) monetary policy has no impact on equilibrium income.
In the intertemporal model with money, the optimal amount of money is
A) equal to total output. B) equal to consumption and investment. C) zero. D) irrelevant as long as it is not zero.
Howie just bought a new digital camera to replace his old one. His old one works perfectly fine and would sell on Craigslist for $100. The fact that Howie would not pay $100 for it, yet continues to let it sit in his closet unused is explained by:
A. the implicit cost of ownership. B. the explicit cost of ownership. C. the explicit cost of sales. D. ignoring sunk costs.
In the graph showing an increase in the growth of the money supply, as the economy moves from point A to point B on the short-run Phillips curve, real wages fall, causing companies to ______.
a. hire more people
b. lay off more workers
c. hire fewer workers
d. cut back production