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Now the restaurant owner receives some good news and some bad news. The good news is that his landlord has rescinded the rent increase. The bad news is that the price of salmon at the fish market has risen. This is a blow because his restaurant is called SALMON CITY because almost all of the items use salmon. The increase in the price of salmon: Hint: Think in terms of the relation between revenue and cost at the margin -- and its implications for firm behavior. a. will cause him to raise his price and reduce the number of meals that he servesb. will cause him to lower his price in order to raise revenuec. may cause the price he charges to rise or falld. will have no impact on the price that he charges or the number of customers that he serves
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Now the restaurant owner receives some good news and some bad news. The good news is that his landlo...
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