Recall the Application about food and drink pricing during "happy hour" at bars and restaurants to answer the following question(s).Recall the Application. During "happy hour," many bars and restaurants face an increase in demand for food and drink, and these establishments often cut prices during these times of increased demand. When this demand increases, the demand curve facing these bars and restaurants becomes:
A. vertical.
B. horizontal.
C. steeper.
D. flatter.
Answer: D
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Which of the following statements is true?
A) Arguments based on anecdotes are always true. B) In the scientific method, anecdotes are more important than data. C) Arguments by example are appropriate when contradicting a blanket statement. D) It is easier for a researcher to jump to a wrong conclusion when she uses a large data set.
If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then
A) each country will produce both pizza and beer. B) the U.S. will produce beer and trade with Germany for pizza. C) the U.S. will produce pizza and trade with Germany for beer. D) All of the above.
If price is less than the average variable cost, firms that seek to maximize profit should shut down
a. True b. False Indicate whether the statement is true or false
Suppose that a firm uses both labor (L) and capital (K) as inputs. The firm's long-run production function is Q = F(L,K) = 8?L?K. The firm has _____ units of capital. If the firm uses an efficient production method and hires _____ workers, it can produce _____ units of output.
A. 100; 100; 1,200 B. 100; 225; 800 C. 225; 100; 1,200 D. 225; 225; 1,000