The reason that all-you-can-eat restaurants can make a profit is due to
A. the law of increasing relative costs.
B. the law of demand.
C. the law of diminishing marginal returns.
D. the law of diminishing marginal utility.
Answer: D
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Suppose a share of stock is expected to pay an annual dividend of $12 forever. At a discount rate of 9.4 percent, the share's market price should be
A) $12.77. B) $13.13. C) $112.80. D) $127.66.
Refer to the table below. What long-run capacity of resort units should Gorgeous Sands Resort select?
The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units.
A) 250
B) 300
C) 350
D) 200
Comparative advantage is based on opportunity costs
a. True b. False
ABC Company incurs a cost of 50 cents to produce a dozen eggs, while XYZ Company incurs a cost of 70 cents to produce a dozen eggs. Which of the following price increases would cause both companies to experience an increase in producer surplus?
a. The price of a dozen eggs increases from 40 cents to 55 cents. b. The price of a dozen eggs increases from 55 cents to 70 cents. c. The price of a dozen eggs increases from 55 cents to 75 cents. d. All of these price increases would cause both companies to experience a loss in producer surplus.