During the course of a week, McDonald's has enough time to hire or layoff workers, but it does not have enough time to expand its kitchen or add an additional seating area. In this situation, McDonald's:
A. has no fixed costs.
B. is in the short run.
C. suffers an economic loss.
D. earns a large profit.
Answer: B
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Internal economies of scale occur at the ________ levels.
A. plant and industry B. plant and firm C. firm and industry D. plant, firm, and industry
Assume the D curve for orange juice (a normal good) in the US has shifted to the left. Which of the following factors has most likely caused this to happen?
a) Increase in the P of orange juice. b) Increase in the availabilty of energy drinks (substitute products). c) Increase in consumer income. d) Decrease in the supply of orange juice. e) Decrease in the P of orange juice.
Railroads fueled the expansion of all markets in the post-bellum period of U.S. history
Indicate whether the statement is true or false
JC's music production company provides artists with studio time and a backing band to record with. In providing the rhythm track, JC can employ drum machines or drummers
Regardless of the quantity of output JC produces, he can substitute two drummers with one drum machine—drum machines tire out less quickly). Draw a few isoquant lines (with numbers) reflecting this production function for the rhythm track. Determine the function representing this production process.