Assignment:
Focus on the costs of supply and the distinction between short run and long run.
You are going to open a new restaurant (not a franchise) where you will have to make certain decisions in the "short run". Be specific and realistic.
• What is invoked in the initial setup: describe your restaurant.
o Identify, your fixed resources/costs, e.g. building, rent
o Identify your variable resources/costs, e.g. dishwashers, wages
• Describe your maximum capacity and what happens as you approach this maximum capacity.
• Now describe what happens when you attempt to push beyond capacity
o Utilize within your description your fixed and variable resources and costs.
Now you wish to expand your capacity in the "long run". Be specific and realistic.
• Describe how you might expand your capacity over time in the "long run".
• Describe any economies of scale you might experience.
• Describe any diseconomies of scale you might experience.
The Required Layout of your assignment
• Use at least FIVE sources for your assignment; attach documentation (data) as required throughout homework (you can use tables, graphs, pie charts, etc.; and attach a reference sheet to your assignment.
• Your essay discussion cannot exceed 250 words;