Thani Jambulingham Wants to Open a Restaurant That Features the Finest

question 14

Multiple Choice

Thani Jambulingham wants to open a restaurant that features the finest in Indian and middle-eastern delicacies.To determine the feasibility of his restaurant,he hired FoodFacts marketing research consultants.The experts at FoodFacts studied all the market information available and determined that consumers aged 30 to 45 who love spicy cuisine were most interested in the proposed restaurant.In examining the restaurant environment,FoodFacts researchers found the west side of the city offered the best options for opening the restaurant.Jambulingham was told the biggest obstacle in opening the restaurant related to obtaining the necessary permits from the city and province.
-Refer to Indian Restaurant.The uncontrollable environmental factors Jambulingham faces in terms of obtaining permits for the new restaurant represent what type of factors?

• A) economic
• B) political and legal
• C) demographic
• D) cultural

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Definitions:

Economies of Scale

Cost advantages obtained by an increase in production, leading to a reduction in average costs per unit.

Long-run Average Total Cost

The average total cost of production when all inputs, including capital, are variable, typically illustrating economies of scale.

Marginal Cost

The increased cost resulting from the creation of one more unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity produced, indicative of the cost per unit of output.