Restaurants don't use market price to allocate their tables because
A)they would have to watch the price of a table at other restaurants to keep competitive.
B)restaurants would have to advertise the price.
C)the price of a table would fluctuate hourly,customer uncertainty would deter patrons,and lower demand would bring lower profit.
D)they would have to continually change the supply of tables to keep the price constant.
E)the price of a table would eventually fall to zero and restaurants would incur a loss.

Question

Quizplus · Accepted Answer

Market price would fluctuate hourly based on supply and demand, causing uncertainty for customers and potentially lowering profits for the restaurant. It would also be difficult for the restaurant to continually adjust the supply of tables to keep the price constant. Therefore, most restaurants use fixed prices for their tables.

Restaurants Don't Use Market Price to Allocate Their Tables Because