Performance of the existing burger place

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Reconsider the story: Dez Purrit is considering buying and opening a fast food franchise with his life's savings. He is trying to decide whether a Burger Palace or a Chicken Castle is a better investment. He has decided on a crossroads where the only existing restaurant is a Burger Heaven. Dez has persuaded the owner of the existing Burger Heaven to show him the restaurant's books, and he's impressed with the restaurant's consistently high revenue.

Suppose again that he decided to open a Burger Palace (instead of a Chicken Castle) based on the performance of the existing burger place. Which of the following would be the most reasonable criticism of the argument Dez is considering?

a. Since she profits from the success of her restaurant, the owner of Burger Heaven is an interested party and consequently, the quote is unusual with respect to being correct.

b. Dez's sample was far too small, and it was biased since it contained no chicken restaurants.

c. Thwre are important dissimilarities between the existing Burger Heaven and the potential Burger Palace since the former is earning its revenue without competition from another burger place at the corner.

d. Burger Heaven is an unusual revenue producing restaurant with respect to being a burger place since more and more people are becoming vegetarians and vegans.

Reference no: EM131337564

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