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For Consumers,pizza and Hamburgers Are Substitutes

question 220

Multiple Choice

For consumers,pizza and hamburgers are substitutes.A rise in the price of a pizza causes a _____ in the equilibrium price of a hamburger and a(n) _____ in the equilibrium quantity of hamburgers.


Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing for adjustments in production processes.

Industry Profits

The total earnings of companies within a particular industry, after subtracting all costs from total revenue.

Economically Break Even

The point where total revenues equal total costs, resulting in zero economic profit.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent or salaries.

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