Consider a Hamburger Fast-Food Chain That Began Operations Prior to World

question 93

Multiple Choice

Consider a hamburger fast-food chain that began operations prior to World War II. In which of the following would have been part of its specific environment after the start of World War II?

• A) other fast-food restaurants that sell hamburgers
• B) its customers who eat burgers at least once a week
• C) the meat packing company that supplied its beef
• D) government-mandated beef rationing as a result of World War II
• E) all of these

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for adjustment to changes.

Fixed

In economics, pertains to costs that do not change with the level of output or production, such as rent, salaries, and insurance.

Variable

A quantity that can take on more than one value.

Short-Run Average Total Cost Curve

A graphical representation that shows the average total cost of producing different levels of output in the short run, when at least one input is fixed.