Cocina Mas Fina Makes All Its Menu Items from Scratch

question 170

Multiple Choice

Cocina Mas Fina makes all its menu items from scratch and uses authentic Mexican herbs in its dishes. As a result of the restaurant's focus on using specialty ingredients, prices are 75 percent higher than the competition's. Cocina Mas Fina knows ______.

• A) the higher the price, the better its perceived quality
• B) people always pay more for items that are unfamiliar to them
• C) people think that the competition's food is priced too low
• D) experience has taught consumers to ignore prices

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Definitions:

Initial Investment

The amount of money used to start a new business venture, project, or investment.

Natural Resources

Raw materials and components found in the environment that can be used for economic gain, such as minerals, forests, water, and land.

Final Goods and Services

Goods and services sold to final, or end, users.

Entrepreneurial Ability

Entrepreneurial ability involves the skills and qualities that enable an individual to identify opportunities, take risks, and organize resources effectively to start and manage a business.