An explanation of how Nicole's work at the restaurant fits into the circular flow model.
(a) The restaurant where Nicole works represents: The firms in the circular flow model, as it is where goods and services (meals in this case) are produced and sold.
(b) The meals that the restaurant sells represent: The goods and services produced by firms and exchanged in the product market.
(c) The labor that Nicole provides to the restaurant represents: The flow of labor services from households to firms in exchange for wages, which is a crucial part of the circular flow model.
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