If a restaurant like Buffalo Wild Wings has higher costs than a ...

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If a restaurant like Buffalo Wild Wings has higher costs than a comparable Hooters restaurant, the only way it can have higher profits is if
 
  A) the demand for its food is higher than the demand for food at Hooters.
  B) it sells the quantity associated with its minimum average total cost.
  C) it has more locations than Hooters.
  D) its marginal revenue is lower than the marginal revenue of Hooters.

Question 2

Refer to Figure 15-3. Suppose the monopolist represented in the diagram above produces positive output. What is the profit/loss per unit?
 
  A) loss of 7 per unit B) profit of 14 per unit
  C) profit of 30 per unit D) loss of 21 per unit

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Answer to Question 1

A

Answer to Question 2

A