Menu Costs Will

question 150

Multiple Choice

Menu costs will:

• A)increase the amount of training of workers.
• B)result in price wars between businesses.
• C)increase the legal minimum wage.
• D)make prices inflexible downward.

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Definitions:

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced within a given set of resources.

Suited

The term "suited" refers to being appropriately fitted or tailored for a specific purpose or situation.

Increasing Opportunity Costs

The concept that as the production of one good is increased, the opportunity cost of producing additional units rises.

Production Possibilities Curve

A graph that shows the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.