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: has no fixed costs. has only fixed costs. suffers a guaranteed economic loss. is in the short run. is in the long run.

Answer 1

The joint is in the short run. The short run expresses the idea that an economy acts differently contingent on the length of time it has to react to certain stimuli. The short run does not mention to an exact duration of time but somewhat is unique to the firm. In the short run, occupancies, agreements and salary agreements border a firm's capability to regulate manufacture or salaries in order to uphold a degree of profit.