The MGM Restaurant offers high - quality steaks at 26 locations in the US. The price of a 9-ounce filet mignon steak in May 2016 is given by the following table:

Location Price

New York (4 locations), Chicago,$53

Hampton, Las Vegas

Los Angeles (2 locations)

Atlantic City, Boston, Charlotte, $52

Denver,Washington, D.C.

Atlanta, Dallas, Philadelphia, $47

Tampa, San Antonino

1) What is the market structure for high-quality restaurant steak houses? Why?

2) Suppose the corporate management at the MGM notes that people in various cities, such as Tampa, are more price conscious than people in other cities, such as New York, and that local managers must know what price to charge to be competitive in their local market. Is the demand for filet mignon at the MGM restaurant in Tampa the same as the MGM restaurant in Chicago? If not, how does it differ?

3) The MGM is considering opening a restaurant in downtown Nashville. The MGM estimates that the price elasticity of demand for steak is -3 in Nashville, and the marginal cost of serving a 9-ounce filet is $28.00. What price should the MGM charge in its new Nashville restaurant for a 9-ounce filet?