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.
b
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To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. Referring to the above figure, how much tax per unit has the government imposed?
A) cb B) db C) ab D) ca
Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?
a. Make sure that your competitor clearly understands your actions and intentions b. Make sure that your competitor keeps guessing about your actions and intentions c. Make sure you keep your actions and intentions ambiguous d. All of the above
A demand curve usually has a
a. negative slope because price and quantity demanded are inversely related b. negative slope because as price rises, demand falls c. positive slope because price and quantity demanded are positively related d. positive slope because price and quantity demanded are inversely related e. slope of zero because there is no change along a demand curve when everything else is held constant
The consequences of an economic change that are not immediately identifiable but are felt only with the passage of time are known in economics as
a. opportunity costs. b. utility curves. c. secondary effects. d. comparative advantages.