Barbeque Nation:
The following are the 5 economic concepts involved in the Barbeque Nation.
1.Law of Diminishing Marginal Utility
2.People Respond to Incentives
3.Cardinal Utility
4.Interdependence on Markets
5.Opportunity Cost
1.Law of Diminishing Marginal Utility:
In this they provide more food in the form of buffet. So the food which is provided gives maximum level of satisfaction and reaches a neutral point and then it diminishes. Here the concept of law of diminishing marginal utility arises.
2.People Respond to Incentives:
In this restaurant they offer the customers to celebrate their birthdays and anniversaries there for free and they will provide the cake. This makes the people to get attracted to those incentives.
3.Cardinal Utility:
Feedback for the restaurant is taken in the form of ratings i.e., on a scale of 1 to 10. So this involves cardinal utility.
4.Interdependence on Markets:
In the weekends they charge high prices because for the demand for the restaurants in the weekends.Because of the demand they charge high prices for the customers.
5.Opportunity Cost:
Compare to the other restaurants it is charging some what high than the other but at the same time it is providing many more dishes than the others providing so here the opportunity cost arises.
The following are the 5 economic concepts involved in the Barbeque Nation.
1.Law of Diminishing Marginal Utility
2.People Respond to Incentives
3.Cardinal Utility
4.Interdependence on Markets
5.Opportunity Cost
1.Law of Diminishing Marginal Utility:
In this they provide more food in the form of buffet. So the food which is provided gives maximum level of satisfaction and reaches a neutral point and then it diminishes. Here the concept of law of diminishing marginal utility arises.
2.People Respond to Incentives:
In this restaurant they offer the customers to celebrate their birthdays and anniversaries there for free and they will provide the cake. This makes the people to get attracted to those incentives.
3.Cardinal Utility:
Feedback for the restaurant is taken in the form of ratings i.e., on a scale of 1 to 10. So this involves cardinal utility.
4.Interdependence on Markets:
In the weekends they charge high prices because for the demand for the restaurants in the weekends.Because of the demand they charge high prices for the customers.
5.Opportunity Cost:
Compare to the other restaurants it is charging some what high than the other but at the same time it is providing many more dishes than the others providing so here the opportunity cost arises.
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