When the Chili Restaurant Chain Was in Financial Trouble, Its

question 21

Multiple Choice

When the Chili restaurant chain was in financial trouble, its CEO delegated the managers of each of the chain's restaurant to trim costs without sacrificing customer satisfaction.In other words, the individual restaurant managers were:

• A)made accountable
• B)given hierarchical authority
• C)given job security
• D)given task leniency
• E)made pseudo-authority figures

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Definitions:

Short Run

A period in which at least one factor of production is fixed, affecting the ability of a business to increase output in response to increased demand.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as production increases.

Average Total Cost (ATC)

The total cost of production (fixed and variable costs) divided by the total quantity of output produced.

Marginal Cost (MC)

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.