Business, 15.04.2020 15:25 ahrensy8444

The restaurant business in town is a monopolistically competitive industry in long- run equilibrium. One restaurant owner asks for your advice. She tells you that, each night, not all tables in her restaurant are full. She also tells you that she would attract more customers if she lowered the prices on her menu and that doing so would lower her average total cost.

Should she lower her prices?

Draw a diagram showing the demand curve, marginal revenue curve, marginal cost curve, and aver- age total cost curve for this restaurant to explain your advice.

Show in your diagram what would happen to the restaurant owner's profit if she were to lower the price so that she sells the minimum-cost output.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 16:30

How is the architecture career pathway different from the construction pathway? a. architecture involves coordinating with contractors to make sure everyone stays on schedule. b. architecture involves using tools and equipment to build something new. c. architecture involves the design process, considering the function and safety of the project. d. architecture involves evaluating the work of contractors and employees.

Answers: 1

Answer

Business, 21.06.2019 16:40

Acme published a story about paul and as a result paul sued acme for damage to his reputation, emotional distress, and punitive damages. paul won an award of $20,000 for damages, $5,500 for emotional distress, and $50,000 for punitive damages. what amount must paul include in his gross income

Answers: 1

Answer

Business, 21.06.2019 19:40

the question using the following data, which show all available techniques for producing 20 units of a particular commodityresource resource prices possible production techniques#1 #2 #3 #4 #5land $4 2 4 2 4 4labor 3 1 2 4 1 3capital 3 5 2 3 1 2entrepreneurial ability 2 3 1 1 4 1assuming that the firm is motivated by self-interest and that the 20 units that can be produced with each technique can be sold for $2 per unit, the firm will

Answers: 1

Answer

Business, 21.06.2019 20:30

Anewspaper boy is trying to perfect his business in order to maximize the money he can save for a new car. daily paper sales are normally distributed, with a mean of 100 and standard deviation of 10. he sells papers for $0.50 and pays $0.30 for them. unsold papers are trashed with no salvage value. how many papers should he order each day and what % of the time will he experience a stockout? are there any drawbacks to the order size proposed and how could the boy address such issues?

Answers: 3

Answer

You know the right answer?

The restaurant business in town is a monopolistically competitive industry in long- run equilibrium....

Questions