Heather Is Faced with Making a Decision About Where to Locate

question 69

Multiple Choice

Heather is faced with making a decision about where to locate a store. She has researched the advantages and disadvantages of a downtown location, a mall location, and a suburban location in a strip mall. What should Heather do now?

• A) Follow up on the effectiveness of the decision.
• B) Develop potential courses of action.
• C) Delay making a decision.
• D) Select and implement one of her choices.

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Definitions:

Variable Costs

Financial obligations that move in correlation with production levels.

Long-Run Equilibrium

A state in an economy or market where, given the long-term flexibility of prices and adjustment of all input factors, supply equals demand and all firms earn normal profits.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers, typically downward sloping.

Average Total Cost

The total cost of production divided by the total output, representing the cost per unit of output.