In terms of location decisions, firms evaluate the infrastructure of the area in terms of access to transportation as well as the quality of life.

True

False

Changes in the macro environment affect individual firms and industries through the microeconomic factors of demand, production, cost, and profitability.

True

False

In 2002 - 2003, some McDonalds' franchise owners reported that profits were declining from selling the discounted items from the Dollar Menu. This suggests that:

those items are price elastic.

those items are price inelastic.

those items are price unitary elastic.

None of these.