A trendy French restaurant is one of the first businesses to open in a small corner of a commercial building still under construction. The restaurant has received rave reviews and has lines of diners waiting for tables most nights.
a. In the short run (next few months), what measures should the restaurant take to maximize its profit? Explain.
b. In the long run (next six months and beyond), how can it maximize its profit? (Assume that the impressive state of demand is permanent.)