Rachael Is the Owner and Manager of Aquarius Coffee and Tea

question 41

Multiple Choice

Rachael is the owner and manager of Aquarius Coffee and Tea, a coffee shop and bakery popular among local college students as a hangout and study spot. Aquarius has been in operation since 1978, and Rachael has made many changes over the years to keep up with the changing tastes and expectations of her clientele. In the last ten years, she has gone from offering paid Wi-Fi to free Wi-Fi, and she recently expanded her offerings to include vegan and gluten-free items as well as salads and sandwiches. Recently, a new café called Bluebird Coffee and Cupcakes opened across town, and Aquarius' business has dropped off considerably. One of her young cashiers, Leora, notes that Rachael has not made the best use of the Internet to promote her business. What will Leora most likely suggest as the quickest, cheapest, and most effective way for Rachael to expand her technological reach to her college-aged clients?

• A)starting a blog with recipes and links to local, socially conscious businesses
• B)expanding her social media presence on Twitter, Instagram, and Snapchat
• C)hiring someone to design and launch an Aquarius Café phone app
• D)sending out a monthly email newsletter with discount codes and coupons
• E)buying ad space on Google, Yahoo, and other search engines

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Definitions:

Perfectly Competitive

A market structure characterized by numerous small firms, identical products, and free entry and exit, leading to firms being price takers.

Marginal Revenue

The supplementary earnings obtained through the sale of one more unit of any good or service.

Total Revenue

The total amount of money generated from the sale of goods or services before any costs or expenses are deducted.

Profit Maximized

A state or point at which a business achieves its highest possible profit with its current resources and market conditions.