Question

What would you expect to happen to the proportion of big chain restaurants relative to mom...

What would you expect to happen to the proportion of big chain restaurants relative to mom and pop restaurants in a town that lowered its minimum wage? will the poportion change due to exits or entrances? which type of restaurant will see more in the way of exits or entrances? why?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

By lowering minimum wage, mom and pop restaurants are able to lower their costs than those big chain restaurants who still pays high minimum wages to it's workers. Over time more and more mom and pop restaurants will enter the market to take advantage of this cost advantage. On the other hand, the proportion of big chain restaurants have higher costs, so, they will begin to loose money when faced with new competitors. This will cause a larger portion of big chain restaurants go out of business and exit the market. As a result, in that town, proportion of big chain restaurants relative to mom and pop restaurants will fall.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What would you expect to happen to the relative proportion of big chain restaurants in a...
What would you expect to happen to the relative proportion of big chain restaurants in a town that lowered its minimum wage? Will the proportion change due to exits or entrances? Which type of restaurant will see more in the way of exits or entrances? Why?
1. If you were able to put together a portfolio that completely eliminated all risk, what return would you expect to earn and why?
1. If you were able to put together a portfolio that completely eliminated all risk, what return would you expect to earn and why?This question is a real eye opener, in that with great risk can come great reward. The asset classes I can think of to present to me a zero-risk situation in the portfolio would be the following: Savings account, CD certificate, bonds, treasuries, and ponds. I expect to get minimal and low return on investment. Obviously the...
IKEA’s Global Strategy Walk into an IKEA store anywhere in the world, and you would recognize...
IKEA’s Global Strategy Walk into an IKEA store anywhere in the world, and you would recognize it instantly. Global strategy standardization is rampant! The warehouse-type stores all sell the same broad range of affordable home furnishings, kitchens, accessories, and food. Most of the products are instantly recognizable as IKEA merchandise, with their clean yet tasteful lines and functional design. With a heritage from Sweden (IKEA was founded in 1943 as a mail-order company, and the first store opened in Sweden...
IKEA’s Global Strategy Walk into an IKEA store anywhere in the world, and you would recognize...
IKEA’s Global Strategy Walk into an IKEA store anywhere in the world, and you would recognize it instantly. Global strategy standardization is rampant! The warehouse-type stores all sell the same broad range of affordable home furnishings, kitchens, accessories, and food. Most of the products are instantly recognizable as IKEA merchandise, with their clean yet tasteful lines and functional design. With a heritage from Sweden (IKEA was founded in 1943 as a mail-order company, and the first store opened in Sweden...
IKEA’s Global Strategy Walk into an IKEA store anywhere in the world, and you would recognize...
IKEA’s Global Strategy Walk into an IKEA store anywhere in the world, and you would recognize it instantly. Global strategy standardization is rampant! The warehouse-type stores all sell the same broad range of affordable home furnishings, kitchens, accessories, and food. Most of the products are instantly recognizable as IKEA merchandise, with their clean yet tasteful lines and functional design. With a heritage from Sweden (IKEA was founded in 1943 as a mail-order company, and the first store opened in Sweden...
1. When should the government intervene in society? Once we have chosen the path of intervention...
1. When should the government intervene in society? Once we have chosen the path of intervention what options/factors need to be considered? How have opinions evolved over time? How might interventions differ between various levels of government (local/state/federal)? 2. People often call America the “Land of the Free”. Describe, with the theoretical tools we have discussed, how our market-based system contributes to that moniker. People have also contended that America is a country where some are systematically disadvantaged. Why might...
Chick-fil-A is dominating the U.S. fast-food market. Whereas McDonald’s, Subway, Burger King, and Taco Bell trudge...
Chick-fil-A is dominating the U.S. fast-food market. Whereas McDonald’s, Subway, Burger King, and Taco Bell trudge along at the top of the heap, Chick-fil-A has quietly risen from a South- east regional favorite to become the largest chicken chain and the eighth-largest quick-service food purveyor in the country. The chain sells significantly more food per restaurant than any of its competitors—twice that of Taco Bell or Wendy’s and more than three times what the KFC Colonel fries up. And it...
What strategy would you recommend for Dove (1) in responding (or in not responding) to consumers...
What strategy would you recommend for Dove (1) in responding (or in not responding) to consumers and (2) going forward (or not going forward) with the campaign? If they were to go forward with this campaign, should Dove revise its Real Beauty message and if, so, how? The Dove Real Beauty Campaign In 2004, with sales at approximately $2.5 billion, Dove saw an opportunity to tap into women’s self-perceptions of beauty to address female insecurities while building a connection between...
Review and submit the Donatos: Finding the New Pizza case study below. Answer the following two...
Review and submit the Donatos: Finding the New Pizza case study below. Answer the following two questions: 2. Evaluate the Wassup meeting as an exploratory methodology to help define the research question. 4. What measurement scales would you have used on the survey that was part of the in-restaurant product tests? Abstract and Written Case: The pizza segment of the fast-food industry is very aggressive. As people’s tastes change and new diets become the rage, restaurant chains must decide if...
Buddies is a charitable organization that sponsors group activities and provides adult companionship for troubled youths...
Buddies is a charitable organization that sponsors group activities and provides adult companionship for troubled youths from single-parent families. Buddies screens, trains, motivates, and supervises the adult volunteers, who are paired with children referred by local agencies and by parents concerned with their children’s future. The organization provides a service that can augment any professional help a child may be receiving. But its main role is one of prevention by providing a meaningful adult relationship for a child before the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT