When a Restaurant Stays Open for Lunch Service Even Though

question 43

Multiple Choice

When a restaurant stays open for lunch service even though few customers patronize the restaurant for lunch, which of the following principles is (are) best demonstrated? (i)
Fixed costs are sunk in the short run.
(ii)
In the short run, only fixed costs are important to the decision to stay open for lunch.
(iii)
If revenue exceeds variable cost, the restaurant owner is making a smart decision to remain open for lunch.

• A)(i) and (ii) only
• B)(ii) and (iii) only
• C)(i) and (iii) only
• D)(i), (ii), and (iii)

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Definitions:

Veins Overstretching

refers to the condition where veins are stretched beyond their normal capacity, often leading to varicose veins.

Artery Wall

The structure surrounding an artery, composed of three layers: the inner endothelium, middle muscular layer, and outer connective tissue, designed to withstand and regulate blood pressure.

External Carotid Artery

A major artery that supplies blood to the face and neck.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, typically measured to assess the heart's function and overall health.