A Restaurant Owns the Land on Which It Is Located

question 158

Multiple Choice

A restaurant owns the land on which it is located, a small piece of property in the center of a city that has a growing population. The restaurant owner does not want to change locations, so he has put as many tables in the restaurant as possible without making customers feel crowded. The restaurant owner will

• A) earn greater rent due to growing demand and limitations on supply.
• B) increase the quantity of meals supplied as the demand grows, earning higher profit from the larger quantity sold.
• C) face higher costs and lower rents due to the growing population around him, which will increase demand for restaurant meals.
• D) earn lower rent because the return to land will fall.

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Definitions:

Emotional Feeling

An internal subjective experience of emotions, often associated with thoughts, physiological changes, and behaviors.

Footbridge Dilemma

A moral decision-making scenario used in psychology to explore ethical reasoning, wherein one must choose whether to sacrifice one life to save others.

Moral Dilemma

A situation in which a difficult choice has to be made between two or more actions, each of which is morally challenging or compromising.

Emotional Intelligence

The capacity to identify, comprehend, control, and logically interact with one's own emotions and those of other people.