People tend to eat more at all you can eat buffets than they would at any other restaurants. This is so because the cost of consuming an additional item at an all you can eat buffet is
a. negative
b. zero
c. positive
d. None of the above
QUESTION 2Firm X owns both a grocery store and the parking lot outside the grocery store. In order to increase the traffic at the store the owners of the store should
a. Increase the prices on the goods sold in the store
b. Increase the parking rates
c. All of the above
d. None of the above
QUESTION 3Sarah can bake 200 cookies in an hour or watch her favorite tv show. If she chooses to watch her show, her opportunity cost is
a. 200 cookies
b. 100 cookies
c. 150 cookies
d. Need more information
QUESTION 4Brenda's Bakery started selling coffee along with pastries. In order to increase total sales she should
a. Increase the prices on coffee
b. Decrease the price on pastries
c. Increase the price of pastries
d. Shut down
QUESTION 5You go to see a movie that you believe would turn out to be amazing. The ticket costs you 20 . Once in the theatre you realize that the movie is awful. If you leave now, you can still catch your favorite TV show. What should you do?
a. Stay and watch the movie since you paid 20 for it
b. The ticket price is now a sunk cost, you can ignore it and go home
c. Stay and watch the movie since the opportunity cost of the movie is zero
d. None of the above
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