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

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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

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