Question
Watch the video using the link : https://www.youtube.com/watch?v=UP9hZXJQWdk&t=452s then answer the following questions. 1. What costs does the firm consider fixed? What costs do they
Watch the video using the link : https://www.youtube.com/watch?v=UP9hZXJQWdk&t=452s
then answer the following questions.
1. What costs does the firm consider fixed? What costs do they consider variable?
2. How does putting people outside in the drive thru change the firm's costs on a given day? Be specific. Consider not only VC and FC, but think of ATC, AVC, MC, AFC. Are there sunk costs that should not be considered when deciding to put workers outside on a busy day?
3. Pretend you are observing the drive-thru before and after a worker is sent outside to take orders with an iPad. List things you would be looking for in a successful scenario. What things would signal the process is not working as intended?
4. Is a double drive-thru a sign of economies of scale or diseconomies of scale for individual Chick-fil-A stores? Explain.
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