A Profit-Maximizing, Monopolistically Competitive Restaurant Serves 60 Burgers a Day

question 53

Multiple Choice

A profit-maximizing, monopolistically competitive restaurant serves 60 burgers a day at a total cost of $180 and earns a total profit of $180.In the long run, everything else equal, the

• A)restaurant will charge more than $6 per burger.
• B)restaurant's average total cost will rise and its total revenue will fall.
• C)restaurant will sell more burgers at a lower average profit per burger.
• D)All of the above are correct.

Differentiate between needs and wants in the consumer buying process.

Identify the factors that influence the consumer buying process, including individual, situational, and social influences.

Explain the concept of niche marketing and its application.

Recognize the psychological aspects affecting the consumer buying process, including cognitive dissonance and the influence of social factors.

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Definitions:

Profit Ratio

A financial metric that measures the amount of profit generated by a business relative to aspects of its operations, such as sales.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in a profit of zero.

Unit Selling Price

The price for which a single unit of a product is sold, not including any additional fees or charges.

Fixed Costs

Expenses that do not change in response to the level of goods or services produced by the business, such as rent or salaries.