Recall the Application about the costs involved in opening a restaurant to answer the following question(s).Recall the Application. The royalty fee of 8.25 percent of revenue that you would pay to Sonic (the owner of the Sonic Drive-In brand) is:
A. considered a variable cost.
B. considered a sunk cost.
C. not considered part of your costs.
D. considered a fixed cost.
Answer: A
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Which of the following is the best indicator of standard of living?
a. Nominal GDP b. Real GDP c. Real GDP per capita d. Productivity e. Productivity per unit of labor
Foreign investment can be economically beneficial for all of the following reasons except:
A. increases the GDP of the host country by giving it access to additional resources. B. increases the GDP of the investing country by providing it with ways to earn higher returns on its capital. C. makes the world a more efficient place by moving capital from places with low returns to places with high returns. D. it always leads to a higher interest rate.
Over the last 35 years, the wage gap between people of different education levels has ______.
a. widened b. narrowed c. disappeared d. not changed