Town has two burger restaurants located across the street

Assignment Help Basic Computer Science

Reference no: EM13747156

A small midwest town has two burger restaurants located across the street from each other: 'Burgerama' and 'The Burger Brothers'. As both restaurants compete for the same customers, they are both considering offering a larger burger with more toppings to lure additional customers to their respective restaurant. This larger burger would still be sold at current price $11.50 per burger meal, but the total cost per meal would increase from $5.20 to $6.40. Assuming that the total quantity of burgers demanded at this price is 100 burgers per week, the customer base is divided equally between the two restaurants when the burgers are of equal size. Furthermore, 75% of all customers would eat at a restaurant that serves considerably larger burgers for the same price as the competitor.

a) Complete the payout matrix below with the total profit each restaurant would earn in the different scenarios based on this information:

Instruction: Enter your responses rounded to 2 decimal places.

b. Using the information above, we see that equilibrium out come will be for , which is the option for Burgerama and the option for The Burger Brothers.

Reference no: EM13747156

Questions Cloud

The level of real aggregate demand for output in a macro : Suppose the level of real aggregate demand for output in a macro economy is a negative function of the expected real interest rate- the nominal interest rate minus the expected inflation rate. Suppose also that the monetary authorities are setting th..

What was chiricos envisioned style of metaphysical : What two Modernists groups of German Expressionism emerged? What did the artists of the two groups share in style? What was Chirico's envisioned style of metaphysical?

The level of real aggregate demand for output in a macro : Suppose the level of real aggregate demand for output in a macro economy is a negative function of the expected real interest rate- the nominal interest rate minus the expected inflation rete. Suppose also that the monetary authorities are setting th..

Find flow speed and depth of water above a hump : determine normal depth, determine critical depth and what are Froude number and flow regime - Find flow speed and depth of water above a hump.

Town has two burger restaurants located across the street : A small midwest town has two burger restaurants located across the street from each other: 'Burgerama' and 'The Burger Brothers'. As both restaurants compete for the same customers, they are both considering offering a larger burger with more topping..

Identify key cultural in time periods from 1920s to present : Prepare a 10-minute Microsoft PowerPoint presentation in which you identify key cultural time periods from the 1920s to the present.

Differentiate between pancreatitis and peptic ulcer : Differentiate between pancreatitis and peptic ulcer and Compare and contrast the pathophysiology, signs, and possible complications of pancreatitis and peptic ulcer

Discuss how the various rationales of spc can be used : SPC is a part of the quality assurance process. Discuss how the various rationales of SPC can be used to analyze and solve this business problem

User Account

All Pages