Explain how a restaurant is able to differentiate between the short run and long run

Explain how a restaurant is able to differentiate between the short run and long run

Week 3 Discussion one
Let’s assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables.
Describe the difference between the short run and long run in the example to bringing about more tables for the customers.
How is the restaurant able to differentiate between the short run and long run?
Required Sources
 Chapter 7: Firms and Production
 Chapter 8: Costs and Profits

 

Answer preview:

The form of business enterprise

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