If a restaurant like Buffalo Wild Wings has higher costs than a comparable Hooters restaurant, the only way it can have higher profits is if
A) the demand for its food is higher than the demand for food at Hooters.
B) it sells the quantity associated with its minimum average total cost.
C) it has more locations than Hooters.
D) its marginal revenue is lower than the marginal revenue of Hooters.
A
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Refer to Figure 28-9. Fed Chairman Paul Volcker's response to high inflation of the late 1970s is depicted in the figure above as a movement from
A) A to D to C. B) A to B to C. C) C to E to B. D) C to D to A. E) C to B to A.
Elasticity measures
A) the slope of a demand curve. B) the inverse of the slope of a demand curve. C) the percentage change in one variable in response to a one percent increase in another variable. D) sensitivity of price to a change in quantity.
In a market operating along the production possibilities curve, which of the following is inevitable if the production of one of the goods is increased?
a. inefficiency b. labor shortage c. unemployed resources d. less of other goods must be produced
The national debt
a. can be paid off without major economic effects b. need never be paid off c. is no more serious a problem than is a corporation's debt d. should not exist during a period of economic prosperity e. is the simple sum of post budget deficits