B. There are about 34,000 full service restaurants in Miami, Florida with a population of about 2.5 million. What type of market structure is the restaurant business in Miami, Florida? Explain your reasons.
The market structure of the restaurant business in Miami, Florida would be considered a “Monopolistic Competition”. Monopolistic competition is where you have a large number of firms similar to one another, advertising or selling similar, not identical products. When considering restaurant business, you must consider the location of the restaurant and being that these are considered “full service” restaurants; no two restaurants would be exactly the same. Also you must take into consideration, idealistically the most important consideration, the chefs. Being a chef is a skill and depending on their specialty, its closely impossible to find two chefs who cook exactly the same. I believe chefs cook with their own special signature and that is why I consider a full service restaurant, a monopolistic competition. Again, this type of market is easy to get in and easy to get out due to the many variation of competition between the firms. Also when taking into consideration of a restaurant and what type of foods are prepared, it’s rather simple to obtain the research on the cuisines or even the chef, themselves.
D. PC-World is a U.S. manufacturer of personal computers. The CEO is looking at opportunities for off-shore production. The selection of the country where PC-World will establish a production facility will depend on the following two factors: 1. The local wage in US$ terms; and 2. The rate of unemployment. According to the CEO, a low wage country will give the company a cost advantage, while a high unemployment rate will mean that there are plenty of workers available to work at the manufacturing facility. How would you advice the CEO regarding the use of these two indicators as the selection criteria?
In order to determine what would be the best...
Please join StudyMode to read the full document