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Long-run business decisions for a restaurant.

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You are an entrepreneur and you have opened a restaurant in a nice area of town. Discuss at least 2 long run decisions that you need to make about the business. What are at least 2 factors that will drive your decision?

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Solution Summary

This solution gives a brief definition of the terms 'long run' and 'short run', gives examples of long-run decisions that must be made by a restaurant entrepreneur, and discusses factors that will drive those decisions.

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The long run is defined as a period of time over which all factors of production are variable. In the long run you can do anything with your business: remodel your restaurant, buy and sell capital goods like tables and chairs, move to a ...

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