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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.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M92425653
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