A successful Mexican seafood restaurant in Texas has a single owner and a single location. The owner is debating on the next step for the business. The owner thinks that opening only a couple of new locations in the area could help maintain the customers' perception of a unique local restaurant, which has been part of its success. On the other hand, franchising the restaurant could drive rapid economic growth and therefore develop an image as a regional restaurant. It is also possible that a combination of new local locations and franchising could bring better financial and public relations results. This option has the highest associated cost, whereas opening only a couple of new locations or franchising would cost less. In any case, the owner believes the worst-case scenario is to have moderate demand and the best-case scenario is to have high demand.

What are the states of nature in the owner's decision?

A. Opening a couple of locations, franchising, and both

B. Local and regional customers' perception

C. Economic growth and local and regional customers' perception

D. High demand and moderate demand