04 Jun Question A small midwest town has two burger restaurants locate
Question
A small midwest town has two burger restaurants located across the street from each other: ‘Burgerama’ and ‘The Burger Brothers’. As both restaurants compete for the same customers, they are both considering offering a larger burger with more toppings to lure additional customers to their respective restaurant. This larger burger would still be sold at current price $11.50 per burger meal, but the total cost per meal would increase from $5.20 to $6.40. Assuming that the total quantity of burgers demanded at this price is 100 burgers per week, the customer base is divided equally between the two restaurants when the burgers are of equal size. Furthermore, 75% of all customers would eat at a restaurant that serves considerably larger burgers for the same price as the competitor.
a) Complete the payout matrix below with the total profit each restaurant would earn in the different scenarios based on this information:
Instruction: Enter your responses rounded to 2 decimal places.
b. Using the information above, we see that equilibrium out come will be for , which is the option for Burgerama and the option for The Burger Brothers.
I have the made the payout matrix. I just need you explain part b and also tell me the answers for part a.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.