Agave, Six Feet Under, Globe, Silk, Sotto Sotto and Zocalo are all restaurants in Atlanta. Suppose at the profit maximizing quantity, Zocalo charges $22 for each dinner entrée, and its ATC is equal to $24. What should Zocalo do?
A) Cannot determine whether Zocalo should stay open or shut down in short run, but Zocalo should go out of business in the long run.
B) Produce in the short run and go out of business in the long run.
C) Shut down in the short run and go out of business in the long run.
D) Cannot determine whether Zocalo's should stay open or shut down in the short or long run.
A
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In the economic sense, almost everything is scarce. ________ of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price
A) Scarcity B) A shortage C) A surplus D) An overstock
Examples of economies of scale are:
A. the decrease in overall transaction costs that occur as volume increases. B. the decrease in overall information costs that occurs as more transactions are handled. C. the reduction in the cost per transaction that occurs as the number of transactions increase. D. the additional fees financial intermediaries charge on small accounts.