A Local Potato Chip Company Plans to Keep and Maintain

question 188

Multiple Choice

A local potato chip company plans to keep and maintain its chip factory,which is estimated to last 25 years.All cost decisions it makes during the 25-year period

• A)are short-run decisions.
• B)are long-run decisions.
• C)involve only maintenance of the factory.
• D)are zero, since the cost decisions were made at the beginning of the business.

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Definitions:

Price Elasticity

A measure of how much the demand for a product changes in response to a change in its price.

Hamburger

A popular food item consisting of a cooked patty of ground meat, usually beef, placed inside a sliced bun.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, showing the sensitivity of consumers to price changes.

Point C

In the context of economic graphs and models, a specific point that can represent a variety of economic outcomes or equilibria depending on the diagram.