A rise in demand for restaurant meals is likely to cause which of the following in the long run?
a. economic losses for each restaurant
b. a lower price for each restaurant meal
c. fewer restaurants in the industry
d. more restaurants in the industry
e. economic profit for restaurants
D
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The cost of capital is best described as the
A) opportunity cost of financing a capital outlay. B) funds that must be acquired to finance a capital outlay. C) decrease in stockholder equity due to a capital outlay. D) All of the above
Suppose that the world price of kiwi fruit ($10 per box) is below the domestic price ($12 per box). A tariff of $1 per box would:
a. cause foreign producers to be better off, because the price they charge is now higher by $1 per box. b. cause domestic producers to be worse off by $5 per box. c. make domestic consumers worse off as they would be paying $1 more than the domestic price. d. make domestic consumers pay $1 more than the free trade price, but still $1 less than the domestic price. e. cause domestic producers to be worse off by $10 per box.