Subway is a fast-food restaurant chain. Which of the following would be a long-run decision for Subway?
A. hire one more worker in a restaurant location
B. supply more subs in one restaurant
C. replace the manager of a restaurant
D. open a new restaurant in a city
Answer: D
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Applying neoclassical theory to the housing market, a higher marginal product of (housing) capital may be caused by ________
A) higher expected household income B) the inability to buy as much housing at a higher price C) an expected increase in the relative price of housing D) a decrease in the cost of building new houses
Which of the following refers to the additional cost of producing one more unit?
a. Marginal cost b. Variable cost c. Average cost d. Explicit cost
If in the short run the demand for mass transit is inelastic and in the long run the demand is elastic, then a price:
A. decrease will decrease total revenue in the short run and decrease total revenue in the long run. B. increase will increase total revenue in the short run but decrease total revenue in the long run. C. increase will decrease total revenue in the short run but increase total revenue in the long run. D. decrease will increase total revenue in the short run but decrease total revenue in the long run.
MSC - MC reflects
A. an external cost. B. an internal cost. C. average marginal cost. D. marginal benefit.