Several Years Ago,a Bookstore Chain Extended Its Closing Time from 9

question 140

Multiple Choice

Several years ago,a bookstore chain extended its closing time from 9 p.m.to 10 p.m.Now it is considering a further extension to 11 p.m.In making this marginal decision,the results of having gone from 9 p.m.to 10 p.m.are

• A) no longer relevant to the current decision.
• B) relevant if the marginal costs and benefits were unequal.
• C) relevant since they are part of the calculation of total costs and benefits.
• D) relevant if the marginal costs and benefits were equal.

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Definitions:

Price Cut

A reduction in the selling price of products or services, typically to attract more buyers or to sell off excess stock.

Equilibrium Price

The price at which the supply of an item matches its demand, leading to a stable market condition where there is neither excess supply nor excess demand.

Equilibrium Output

The level of production at which the quantity of goods supplied equals the quantity of goods demanded, leading to market stability.

Diagram

A simplified drawing using lines and symbols to represent structures, systems, or processes, aiding in the explanation or analysis of data and concepts.