V. Imagine you are the regional marketing manager for a fast food firm. The corporate office has always been unwilling to try radically new ideas. You proposed a few, but they were never approved. So, you were late to offer breakfast at your stores. Your competitors did it first. Similarly, you were late to offer happy meals. You were late to tie in endorsements and merchandise from actions movies. You were late to offer loyalty cards. NO MORE. Finally corporate has given you permission to try something new. You plan to offer an upscale menu during the evening. Kids are at home studying. Only hungry adults are out around town. Besides the upscale menu, you think customers would like subdued lighting, soft music, and tablecloths covering the plastic booths. It is a radically new idea, but you try it. And, it is successful! Sales are way up and so are profits. 1. Of the three market structures we have studied, which best fits this scenario? (Pure Competition, Monopolistic Competition, Monopoly) Explain why. 2. Use the average cost family of curves to illustrate the financial position of this firm after introducing the upscale menu with ambience. 3. Using the assumptions of the market structure you picked, what do you predict will happen as time goes by? 4. New ideas abound. But not all are successful. Can you think of a new idea or new product, in your lifetime that failed? Pick an idea or product that seemed to hold great promise, but turned out to be a failure? Write it here