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Steve Owns a Bike Store

question 88

Essay

Steve owns a bike store.If Steve decides to double the size of his bike store,his rent will increase as well.Is this increase in rent a short-run cost or a long-run cost?


Definitions:

Rational

Decision-making or behavior guided by logical reasoning and self-interest.

Beneficial Activities

Activities that produce positive outcomes for individuals or communities, including economic, social, or environmental benefits.

Own and Sell

The legal rights and ability to possess and then transfer the ownership of goods or assets.

Purchasers of Resources

Individuals or entities that buy or acquire resources for the purpose of production of goods and services.

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