Have you ever walked into a restaurant for lunch and found it almost empty? Why, you might ask, does the restaurant even bother to stay open? It might seem that the revenue from so few customers could possible cover the cost of running the restaurant. Provide an opinion using the concepts of sunk costs, marginal cost and marginal revenue.

Answer rating: 100% (QA)

Certainly encountering an almost empty restaurant during lunchtime can raise questions about its viability However the decision to stay open despite f... View the full answer