Why Is the Fast-Food Industry Generally Considered to Be a Constant

question 86

Multiple Choice

Why is the fast-food industry generally considered to be a constant cost industry in regards to its use of labour as an input?

• A) because few people prefer to work in the industry
• B) because the productivity of the workers is relatively low
• C) because firms use a relatively small share of unskilled labour in most cities
• D) because available labour is in short supply

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Definitions:

Equally-Weighted Portfolio

An investment portfolio where each asset is allocated the same proportion of the total investment.

Securities

Assets indicating ownership in a company available on the stock market, indebtedness to either a corporate or government issuer, or entitlements to ownership through an option.

Two-Factor Economy

An economic model that considers two distinct factors or variables influencing outcomes, often used in finance to analyze returns or risks.

Expected Return

The average return an investor anticipates receiving on an investment if it is held for a specific period of time.