Use the Following to Answer Question(s): the Restaurant Model

question 109

Multiple Choice

Use the following to answer question(s) : The Restaurant Model

-(Exhibit: The Restaurant Market) The exhibit shows curves facing a typical restaurant in a community.Assume that the market is characterized by many firms, differentiated products, easy entry and easy exit.If the restaurant shown here is typical of others in the community, then in the long-run, prices charged by firms in the market are likely to:

• A) fall.
• B) rise.
• C) remain unchanged.
• D) There is not enough information given to answer the question.

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Definitions:

Agency Shop

A form of a union security agreement where employees do not have to join the union but must still pay dues as if they were members.

Union Shop

Union security arrangement that requires employees to join the union within a certain amount of time (30 days) after beginning employment.

Union Shop

A workplace where employees are not required to join the union to be hired, but must join within a specified time after starting employment.

Measure of Effect Size

A quantitative reflection of the magnitude of a difference or relationship, providing insight beyond simple significance tests.