Consider Two Restaurants Located Next Door to Each Other: Quick

question 91

Multiple Choice

Consider two restaurants located next door to each other: Quick Burger and The Sunshine Café. If Quick Burger opens a drive-through window, the increased traffic and noise will bother customers seated outside at The Sunshine Café. The table below shows the monthly payoffs to Quick Burger and The Sunshine Café when Quick Burger does and does not operate a drive-through window. $$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Quick Burger } \\\text { Operates a } \\\text { Drive-Through } \\\text { Window }\end{array} & \begin{array} { c } \text { Quick Burger } \\\text { Does Not Operate } \\\text { Drive-Through } \\\text { Window }\end{array} \\\hline \text { Quick Burger } & \$ 24,000 & \$ 15,000 \\\hline \text { The Sunshine Café } & \$ 11,000 & \$ 23,000 \\\hline\end{array}$$ If Quick Burger has the legal right to operate a drive-through, and Quick Burger and The Sunshine Café CANNOT negotiate with each other, then will Quick Burger operate a drive-though window?

• A)No, because it is not socially efficient to operate a drive-through.
• B)Yes, because Quick Burger's payoff is higher when it operates a drive-through.
• C)No, because it would lower the payoff for The Sunshine Café.
• D)It cannot be determined.

---

Definitions:

Good Posture

This refers to the alignment of the body in a position that reduces stress on the muscles, spine, and ligaments during movement or while stationary.

Fibrous Disk

A type of cartilaginous joint found between the vertebrae in the spine that acts as a shock absorber.

Vertebrae

The individual bones that stack to form the vertebral column or spine, providing structural support and protecting the spinal cord.

Key Protein

A crucial protein that plays a vital role in the functioning of cells and the body's overall health and development.