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Several months ago, a restaurant developed a new appetizer that is a hit with customers. Many customers go to the restaurant just for the appetizer and it was at the center of a recent highly positive review by a food critic. Preparation involves common ingredients and average culinary skills levels, but requires a very high oven temperature which significantly increases utility costs. Several competing restaurants have since added their own version of the appetizer to their menu. Which criteria for assessing capabilities/core competencies is met?
Economic Efficiency
A situation in which resources are allocated in the most beneficial way from the perspective of society, where no one can be made better off without making someone else worse off.
Benefits
Advantages or financial assistance received from employment, government, or insurance, aimed at improving individuals’ well-being.
Costs
The expenses incurred in the production or acquisition of goods and services, including both direct and indirect expenditures.
Inelastic Demand
A situation in which the percentage change in quantity demanded of a good is less than the percentage change in price, indicating low sensitivity to price changes.
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