Monday, February 13, 2006

Considering the Possibility Curves of Costumers

There is a germen restaurant in Augsburg called the “Boheme”. They do not allow young children to eat dinner at his establishment. The reasoning for this is that children will whine if taken to a restaurant at night and therefore drive off costumers. At the same time this rule prevents the restaurant from accepting costumers who cannot find someone to take care of their children while they go out on the town. In this sense there is an opportunity cost attributed to having the costumers with children, as it would drive off costumers who dislike the noise that might occur while they eat.

The restaurant does allow dogs inside the establishment, though. This raises the possibility that, lacking suitable dog free rooms, they will lose the patronage of people with allergies, and perhaps others who simply do not like dogs. In the best case scenario the restaurant would have enough room to set aside areas for dog lovers and people with young children, but it is far more likely that the restaurant exists in a building with a limited amount of property for such things.

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