How would expect a restaurant to set its prices in long run

Reference no: EM131919257

Problem

Restaurants offer related but differentiated products to their consumers. In the long run, new restaurants enter the market and imitate the cuisine and atmosphere of successful competitors. How would you expect a restaurant to set its prices in the long run? Describe the relationship between price and average total cost. Does a restaurant earn economic profits?

Reference no: EM131919257

Questions Cloud

Despite similarities in a perfectly competitive market total : Despite these similarities, in a perfectly competitive market total surplus is maximized, while in monopolistically competitive market surplus is not maximized.

How cost analysis support outsourcing web site maintenance : An online retailer must decide if it should insource or outsource its Web site maintenance. The company estimates that 4,000 hours per year will be needed.

What are the ethical implications of acmes deferral : Delaney checked with the legal department and found the policy to be legal, What are the ethical implications of Acme's "deferral" of income taxes

Describe the product or business : You may update this depending on any new information). Is multi-segment targeting of the audience important to your Internet Marketing Campaign?

How would expect a restaurant to set its prices in long run : How would you expect a restaurant to set its prices in the long run? Describe the relationship between price and average total cost.

How would you expect mcdonald to set its prices in short run : How would you expect McDonald's to set its prices in the short run? Describe the relationship between price, marginal revenue, and marginal cost.

Does the cost analysis support insourcing the chair frames : A furniture manufacturer is assessing whether it should make or buy the wooden frames for upholstered dining room chairs.

What are some limitations of the purchasing-power-parity : What predictions does the purchasing-power- parity theory make concerning the impact of domestic inflation on the home country's ex- change rate?

How might firms still have positive economic profit : How might firms still have positive economic profit? Describe a strategy a firm in this type of market might use to maintain economic profits.

User Account

All Pages