Question

During the course of one week, the local burger joint has enough time to hire or layoff workers, but it does not have enough time to expand the kitchen area or to add additional seating capacity in the restaurant. in this time frame, the burger joint:
a. has no fixed costs.
b. has only fixed costs.
c. suffers a guaranteed economic loss.
d. is in the short run. is in the long run.

Answer 1

Answer:

d. is in the short run

Explanation:

In the short run, at least one factor of production is fixed. In this question, the kitchen area and sitting space are fixed. These represents the fixed costs.

In the long run, all factors of production are variable.

The variable cost in this question , is the cost of Labour.

I hope my answer helps you