Pizzaroni Cafe on the boardwalk in a popular New Jersey seaside town owned by Angelo McDonald. Situation: Due to the booming tourist season and the exceptional meals he prepares, Angelo is frequently forced to turn away patrons because he does not have enough room to accommodate everyone or because he does not have enough servers and kitchen help, especially on Friday and Saturday nights. Currently, the Pizzaroni Cafe has several pinball and video games that are barely earning enough to pay their monthly rental fees. Angelo brags that the tables in his establishment are exceptionally roomy and have large areas of space in- between tables. Chuck’s Hoagie House, the eating establishment alongside of him in the same building has difficulty attracting patrons due to a rumor that several customers contracted food poisoning last September at his establishment. A) What possible options are available to Angelo to increase the number of patrons he can serve in the short run in an effort to increase profits (fixed inputs that can be fixed in the short-run)? B) What possible options are available to Angelo to increase the number of patrons he can serve in the long run in an effort to increase profits (fixed inputs in the short-run that can be variable in the long-run?
Pizzaroni Cafe on the boardwalk in a popular New Jersey seaside town owned by Angelo McDonald.
Situation: Due to the booming tourist season and the exceptional meals he prepares, Angelo is frequently forced to turn away patrons because he does not have enough room to accommodate everyone or because he does not have enough servers and kitchen help, especially on Friday and Saturday nights. Currently, the Pizzaroni Cafe has several pinball and video games that are barely earning enough to pay their monthly rental fees. Angelo brags that the tables in his establishment are exceptionally roomy and have large areas of space in- between tables. Chuck’s Hoagie House, the eating establishment alongside of him in the same building has difficulty attracting patrons due to a rumor that several customers contracted food poisoning last September at his establishment.
A) What possible options are available to Angelo to increase the number of patrons he can serve in the short run in an effort to increase profits (fixed inputs that can be fixed in the short-run)?
B) What possible options are available to Angelo to increase the number of patrons he can serve in the long run in an effort to increase profits (fixed inputs in the short-run that can be variable in the long-run?
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