During the Recession Many People Chose to Eat at Home

question 38

Multiple Choice

During the recession many people chose to eat at home more often to save money.For restaurants this is ____.

• A) the power of suppliers.
• B) a threat of increased regulation.
• C) a competitive rivalry.
• D) a competitive advantage.
• E) a threat of substitute products.

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Definitions:

Traditional Systems

often refer to conventional or established procedures, techniques, or technologies that have been used over time, typically before newer alternatives.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating the ability to cover fixed costs.

Scarce Resource

A resource with limited availability relative to its demand.

Variable Cost Concept

A pricing strategy where the selling price covers the variable costs per unit, plus a portion of the fixed costs.