Reference no: EM131616943

You are offering advice to an owner of a restaurant and she shares the following information:

"The restaurant often runs a special on bacon and eggs. Normally, it sells about 250 serves at a price of $7, but this rises to about 300 serves at the special price of $5. The chef argues that even 250 serves pushes the kitchen beyond its production capacity. She argues that a price rise above $7 would ease the pressure on the kitchen and would leave the restaurant better off."

Would you advise the owner to follow the chef's advice? Explain your reasons.