Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

As a manager and an entrepreneur, you will face a new challenge - business venture structured on the theory of the firm. You are opening


As a manager and an entrepreneur, you will face a new challenge - business venture structured on the theory of the firm. You are opening a restaurant in your selected town in the State of NY (please name it up front in your assignment). As to simplify the scope of your consideration, we narrow down the problem with several assumptions. You will be serving just a meal in the evening. You also consider a stable level of sales at the full capacity reached; just ignore the slow period of market entry. Make your assessment only per one-month period. Make sure that the targeted level of operations is feasible.


Instruction: You need to apply and discuss relevant economic concepts and tools with supporting data to solve this real-life imitating simulation. Please include also a one-page executive summary for the business plan with assumptions and the goal set, based on the market conditions examined by you. Please make sure that all parts fit in well and make a comprehensive picture with the compromise on the final concept of the business model adopted.

Outline: Please analyze, based on the demand and supply model, the following issues:

number of meals sold and prices charged,

price elasticity of demand and how to address it in your business

total revenue

possible challenges

fixed costs and variable costs and marginal cost

cost of inputs

total cost and unit cost (average total cost)

diminishing marginal product

economies and diseconomies of scale

total profit and profit per unit.

Step by Step Solution

3.41 Rating (148 Votes )

There are 3 Steps involved in it

Step: 1

The Ithaca Eatery A Fine Dining Experience in Ithaca NY Executive Summary This business plan outlines the feasibility of opening a fine dining restaurant named The Ithaca Eatery in IthacaNYWe will foc... blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

More Books

Students explore these related Economics questions

Question

How do you learn about your customer?

Answered: 3 weeks ago