The oldest hamburger chain in the United States is White Castle, which was founded in 1921 . Most of their restaurants in the early days were located in urban areas. In the 1950s they lost much of their business to McDonalds and Burger King
They were slow to respond in building restaurants on highways and in suburbs. How did the advent of the highway system in the 1950s alter residential location patterns and how might this have affected the marginal revenue product of burger chains in both urban and suburban areas. Why did sales drop off in the urban areas where White Castle had earned its initial success?
The advent of the highway system in the 1950s meant that larger numbers of people lived in residential areas located in the suburbs. That put White Castle in direct competition with fast-food chains like McDonalds and Burger King, which had located on highways and in suburban areas. Previously it wouldn't have made sense for White Castle to locate in the suburbs since there were few customers if any living there. Likewise, because of the large migration of people from the inner city to the suburbs White Castle's former customer base was being eroded.
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Which of the following statements best captures the relationship between microeconomics and macroeconomics?
a. For the most part, microeconomists are unconcerned with macroeconomics, and macroeconomists are unconcerned with microeconomics. b. Microeconomists study markets for small products, whereas macroeconomists study markets for large products. c. Microeconomics and macroeconomics are distinct from one another, yet they are closely related. d. Microeconomics is oriented toward policy studies, whereas macroeconomics is oriented toward theoretical studies.
The optimal bid in a first-price, sealed-bid auction with independent private values is to bid:
A. less than the true value of the item. B. the true value of the item and more than the true value of the item, depending upon whether value estimates are affiliated. C. the true value of the item. D. more than the true value of the item.
If the federal government decreases its expenditures on goods and services by $10 billion and decreases taxes on personal incomes by $10 billion, which of the following will occur in the short run?
A) The federal budget deficit will increase by $10 billion B) The federal budget deficit will decrease by $10 billion C) Aggregate income will remain the same D) Aggregate income will increase by up to $10 billion E) Aggregate income will decrease by up to $10 billion