If a restaurant like Buffalo Wild Wings has higher costs than a comparable Hooters restaurant, the only way it can have higher profits is if
A)it has more locations than Hooters.
B)its marginal revenue is lower than the marginal revenue of Hooters.
C)the demand for its food is higher than the demand for food at Hooters.
D)it sells the quantity associated with its minimum average total cost.

Question

Quizplus · Accepted Answer

If Buffalo Wild Wings has higher costs, it can still achieve higher profits if the demand for its food is higher, allowing it to charge higher prices or sell more, thus increasing its revenue.

If a Restaurant Like Buffalo Wild Wings Has Higher Costs