Annie's Breakfast Corner charges $5.00 per meal. Annie's costs for servers, cooks, electricity, food, etc. average out to $3.95 per meal. Her costs for rent, insurance cleaning supplies, and business license average out to $1.25 per meal. Since the market is highly competitive, Annie should:
a. raise her prices above the level set by the market
b. keep the business open in the short run but plan to close the business in the long run.
c. keep the business open in the short run and plan to expand the business in the long run.
d. lay off her staff, break her lease, and close the business immediately.
b
Economics
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Figure 4.3 illustrates the demand for tacos. A decrease in the demand for tacos is represented by the movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
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If you are earning $20,000 this year and the CPI is 165, your real income in base year prices is
A) $121.21. B) $12,121.21. C) $20,000. D) $16,500. E) $33,000.
Economics