"Production Costs" Please respond to the following:
· You are the owner of a fast food restaurant. Given a new item that you recently advertised, you experience additional demand for your business that you do not want to ignore. Identify your fixed and variable costs at your fast food restaurant, and explain the changes to each of these costs, given the increased demand.
· Using the fast food restaurant context in the first part of this discussion, state two methods that take advantage of the increased demand while minimizing costs. Explain two (2) advantages and disadvantages for each method that you have chosen. Provide support for your response.
"Perfect Competition" Please respond to the following:
· Examine a perfectly competitive firm that you have recently purchased a product from, focusing specifically on how it relates to the characteristics of the market.
· Imagine that you are a manager of the perfectly competitive firm that you examined in the first part of this discussion. Identify two challenges of raising the price for a product when other competitors are selling the same type of product for a lower price.