Application of economies and diseconomies of scope

Assignment Help Business Economics

Reference no: EM13997401

In "Kitchen Nightmares," Chef Gordon Ramsay visits struggling restaurants and gives the owners of the restaurant a number of recommendations intended to reverse the restaurant's prospects. One suggestion Chef Ramsay commonly makes is to reduce the size of the restaurant's menu and concentrate on a smaller number of offerings. Our textbook has several theories that can be used to explain how that recommendation can reduce costs.

Explain how the recommendation is an application of Economies and Diseconomies of Scope.

Explain how the Learning Curve concept also would suggest a smaller menu would lead to a cost reduction.

Reference no: EM13997401

Questions Cloud

Compute the equilibrium price and the quantity of oranges : Suppose the demand curve for oranges is given by the equation. Compute the equilibrium price and the quantity of oranges

Conclusion about the profitability of increasing prices : To conduct an experiment, AMC increased movie ticket prices from $9.00 to $10.00 and measured the change in ticket sales. Using the data over the following month, they concluded that the increase was profitable. However, over the subsequent months, t..

The producer and consumer surplus in markets : What happens if you are willing to pay $80 to go to a concert, but the ticket prices are only $50. How does this affect the producer and consumer surplus in markets? Provide a detailed response.

Most heavily taxed items : Why are cigarettes and alcohol the most heavily taxed items in the US? Now, if the government increases the price of these items by 10%, how does this affect the stores that sell them? Provide a detailed response.

Application of economies and diseconomies of scope : In "Kitchen Nightmares," Chef Gordon Ramsay visits struggling restaurants and gives the owners of the restaurant a number of recommendations intended to reverse the restaurant's prospects. Explain how the recommendation is an application of Economies..

Both products have similar production costs : You are the manager of a firm that receives revenues of $175,000 per year from product X and $50,000 per year from product Y . Both products have similar production costs. The own price elasticity of demand for product X is -1.5, and the cross-price ..

What is the benefits of market place clearing : What is the benefits of market place clearing? In relations to health care providers, Is it more beneficial to the supplier of consumer?

Prepare journal entries to record each : Repeat requirement 1 assuming that the company uses the replacement depreciation method instead of the retirement method.

Pay-per-view scheme to pay for programming : When a TV company chooses a pay-per-view scheme to pay for programming, which of the following is true, false or uncertain? Explain carefully in each case. Most of the marks will be awarded for the clarity of your explanation.

User Account

All Pages