Many of the Fast Food Operations Are Entering Markets in Middle

question 30

Essay

Many of the fast food operations are entering markets in Middle Eastern countries.In the United States,breakfast items are very popular and are responsible for a bulk of profit from sales,primarily through drive-in customers.However,to their dismay,managers found that there was practically no demand for breakfast items.Firstly,due to hot weather conditions,people sleep late and wake up late.Secondly,they do not eat burgers,and sausage or bacon is prohibited food.Also,drive-in business is not popular since people go to work at different periods of time.Explain the possible reason(s)behind such a decision and account for its/their failure.

Grasp the concept of marginal and variable costs in business decision-making.

Learn the foundations of net present value (NPV) and its calculation.

Realize the importance of sensitivity, scenario, and simulation analysis in project evaluation.

Understand the different financial rationing situations a firm might face.

---

Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, and free entry and exit, leading to efficient outcomes.

Profit-Maximizing Condition

The state in which a firm's marginal cost is equal to its marginal revenue, aiming to achieve the highest possible profit.

Marginal Revenue Product

The increased earnings from adding one more unit of a resource used in production, such as capital or labor.

Marginal Revenue Product

The extra income created from the use of one additional unit of a production resource or input.