Have you ever walked into a restaurant during lunch downtown and found it almost empty? Or Flown on a flight with so many empty seats you could sleep horizontally on the two seats next to you without anyone waking you up? Or visited a miniature golf course in the summer resort community during some time of the season and you were the only few people there?

1. Why does the restaurant even bother to stay open, if the revenue from the few customers could not possibly cover the cost of running the restaurant? Why do you think the restaurant still open even though it couldn't cover all its costs? (Hint: think about leverage and the various types of cost).

2. In making the decision whether to open for lunch, what kind of costs must the restaurant consider in the decision making and why?

3. Why do you think "Priceline.com" and other discounted hotel and concert ticket vendors manage to sell their ticket at such a lower prices compared to the airlines?