Suppose a Restaurant Has a Monopoly in a Certain Small

question 133

Multiple Choice

Suppose a restaurant has a monopoly in a certain small town.Its rent,which is one of the several fixed costs it incurs whether it sells food or not,has gone up.In the short run,the restaurant should _____

• A)pay the higher rent and increase menu prices.
• B)pay the higher rent and leave menu prices unchanged.
• C)pay the higher rent and lower menu prices.
• D)open another restaurant in the same town.
• E)shut down.

Appreciate the role of distribution channels in international markets.

Understand the importance of location for service businesses that visit the customer.

Know the significance of traffic volume, vehicle speed, and parking availability in business location choice.

Comprehend the role and benefits of incubators for new small businesses.

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Definitions:

Personnel Manager

An individual responsible for overseeing the human resource department of an organization, dealing with staffing, training, and employee welfare.

Statute of Frauds

A legal principle that requires certain contracts to be in writing and signed by all parties involved to be enforceable.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise that the other party has reasonably relied on to their detriment.

Restitution

A remedy in law requiring a party to restore the victim to the position they were in before the wrongful act.