A Caterer Proposes to Serve Four Main Courses Of the First 100 Customers, 44 Select Roast Beef, 24

question 60

Essay

A caterer proposes to serve four main courses. For planning purposes, the caterer expects that the proportions of each that will be selected by customers will be: $$\begin{array} { | l | c | } \hline \text { Selection } & \text { Proportion } \\\hline \text { Roast beef } & 0.50 \\\hline \text { Chicken } & 0.20 \\\hline \text { Fish } & 0.10 \\\hline \text { Vegeterian } & 0.20 \\\hline\end{array}$$ Of the first 100 customers, 44 select roast beef, 24 select chicken, 13 select fish, and 19 select the vegetarian meal. Should the caterer revise the estimates? Use $\alpha$ = 0.05.

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Definitions:

Economic Profit

The difference between total revenue and the total costs of production, including opportunity costs not just explicit costs.

Long Run Equilibrium

A state in which all factors of production and costs are variable, and firms no longer have an incentive to enter or exit an industry, leading to a stable market condition.

Firm

A business organization that sells goods or services in order to make a profit.

Producer Surplus

The difference between what producers are willing to receive for a good or service and the actual amount they receive, due to the market price being higher.