A fast-food company spends millions of dollars to develop and promote a new hamburger on their menu only to find that consumers won't buy it because they don't like the taste. From an economic perspective, the company should:
A. Keep the hamburger on the menu because they've spent so much money and time developing and promoting the product
B. Spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time
C. Pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost
D. Keep trying to sell the hamburger so that people who developed and promote it have a job with the company
C. Pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost
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If lenders refuse to state the debt in terms of dollars, then dollars are not a
A) medium of exchange. B) unit of accounting. C) store of value. D) standard of deferred payment.
The textbook's example of urban traffic flows demonstrates the notion of single-minded pursuits of one's own best interest
A) creates traffic jams. B) interferes with achievement of the public interest. C) produces social cooperation under appropriate rules of the road. D) will not work to any single person's advantage. E) will work to some people's advantage but will harm the vast majority.