When El Torito Restaurant Is Deciding How Many Waiters to Hire

question 15

Multiple Choice

When El Torito Restaurant is deciding how many waiters to hire for a holiday weekend, it is making a ________ decision.

• A) plant-size
• B) long-run
• C) short-run
• D) fixed-input

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Definitions:

Minimum Efficient Scale

The smallest scale of production a firm can achieve while still taking full advantage of economies of scale in terms of costs per unit.

Output

The quantity of goods or services produced by a firm, sector, or economy within a certain period.

Overhead Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Newspaper Industry

Refers to the sector of the economy that is engaged in the production and distribution of newspapers, involving both print and, increasingly, digital platforms.