If Panera Bread's "Clean Food" Strategy Succeeds and Customers Are

question 51

Multiple Choice

If Panera Bread's "clean food" strategy succeeds and customers are willing to pay higher prices for their menu items, the company will

• A)no longer be monopolistically competitive.
• B)continue to earn substantial economic profits in the long run.
• C)eventually suffer economic losses, as do all fast-casual restaurants.
• D)likely attract competitors that offer the same kind of food, and all else equal, eventually economic profits will be competed away.

---

Definitions:

Interest Rate Effect

The impact that changes in interest rates have on consumer spending due to the cost of borrowing; generally, as interest rates rise, consumer spending decreases.

Aggregate Demand

The cumulative need for all economic goods and services, pegged at a singular overall price level during a distinct time period.

Substantial Unemployment

A situation where there is a significantly high rate of unemployment in a particular area, reflecting a large number of people unable to find jobs.

Wages

Compensation paid to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.