Question
Informational Issues. Review You own a chain of 9 restaurants. Some of your business is from tourists, and some is from local residents. As a
Informational Issues. Review You own a chain of 9 restaurants. Some of your business is from tourists, and some is from local residents. As a group, your customers are well described by the tourist-and-natives model. There are 1000 customers per time period, of both types. Tourists make up 30% of your customers (300 tourists), and are willing to pay $25 for a meal. Local residents (natives) are willing to pay only $15. The marginal cost to you of providing a meal to either type is $1. You are thinking of opening a discount restaurant that will charge only $15 for a meal. Should you do this? Why or why not?
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