Question

Subway manager is an economist and told his employees that the store was in a short run. the store has received an offer to rent space across the street for half the cost of their present location. which of the following best describes this scenario?

the would be betraying their landlord if they moved to the new location

the were going to lose their lease in a few months

short run means that one factor of production is fixed so they cannot move because the oven is fixed to the ground

they are in a lease and cannot move until the lease is up

Answer 1

Based on the given scenario, the most appropriate description would be: They are in a lease and cannot move until the lease is up. The fact that the store has received an offer to rent space across the street for a lower cost does not necessarily mean they can immediately move. The lease agreement binds them to their current location until the lease term expires. Therefore, they are unable to relocate until the lease is completed.