Suppose a restaurant that is highly profitable during the summer months is unable to cover its total cost during the winter months. If it wants to maximize profits, the restaurant should
a. shut down during the winter, even if it is able to cover its variable costs during that period.
b. continue operating during the winter months if it is able to cover its variable costs.
c. go a out of business immediately; losses should never be tolerated.
d. lower its prices during the summer months.
B
Economics
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In a production possibilities frontier model, a point inside the frontier is
A) productively and allocatively inefficient. B) productively inefficient. C) productively efficient. D) allocatively efficient.
Economics
It has been hypothesized that the productivity slowdown could have been caused by all of the following except
a. lower worldwide money growth. b. lower technology growth. c. higher oil prices. d. increased government regulation.
Economics