If a seafood restaurant can raise the price of its fried shrimp without losing all of its customers,then the restaurant definitely:

Question

Quizplus · Accepted Answer

If a restaurant can raise the price of its product without losing all of its customers, it suggests that there are not many substitute products available in the market, and customers are willing to pay a premium price for the particular product. This indicates that the restaurant has some degree of market power, which enables it to increase the price without losing all of its customers. Hence, option A is the best choice.

Option B is incorrect because there is no evidence to suggest that the restaurant is experiencing economies of scale.

Option C is incorrect because predatory pricing is when a firm deliberately sets a low price to drive its competitors out of the market, and there is no mention of any other firms in the question.

Option D is incorrect because a monopoly is when a single firm controls the supply of a particular product or service, and there is no evidence to suggest that the restaurant has exclusive control over the market.

If a Seafood Restaurant Can Raise the Price of Its