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Economics assignment

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case study
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5 pages
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  1. Question 1
  2. Question 2
  3. Question 3
  4. Question 4

There are many restaurants in the city providing significantly differentiated menus and are currently generating profits.

Depict in a diagram showing the profit maximising equilibrium for such a typical restaurant. Will this typical restaurant maintain profits in the long-run?

Depict this long run equilibrium for our typical restaurant and explain how this would be different to that of a restaurant under perfect competition.

Night clubs in town often change customer target group and redecorate premises. Some are busy for some time while most remain half empty in an ever lasting competitive rotation. Why do they engage in what seems to be such a waste of resources and higher costs? On the other hand, kiosks hardly seem to change over the years, why do they not behave like night clubs?

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