Multiple Choice
Refer to Scenario 9.3 below to answer the question(s) that follow.
SCENARIO 9.3: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 per cent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly) . Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $5 on average per meal.
-Refer to Scenario 9.3. Total revenue per week is
A) $3,000.
B) $4,000.
C) $4,500.
D) $8,100.
Correct Answer:

Verified
Correct Answer:
Verified
Q123: Economic profit is<br>A) (P‐ATC)q.<br>B) (P+ATC)q.<br>C) P(q-ATC).<br>D) Pq/ATC.
Q124: Refer to the information provided in Figure
Q125: Refer to Scenario 9.8 below to answer
Q126: If a firm's profit is $0, then
Q127: Firms are making profits in a decreasing-cost
Q129: Refer to the information provided in Figure
Q130: Refer to the information provided in Figure
Q131: Refer to Scenario 9.1 below to answer
Q132: Refer to the information provided in Figure
Q133: If _, a firm would operate in