A McDonald’s franchise sells many fast-food items including
hamburgers, French fries, drinks, etc. It had fixed costs of
$500,000 last year. It had a short-run total variable cost of
$726,000, average price of $8, and sold 300,000 food items last
year. Raising Cane’s specializes in chicken meals; hence has a
limited menu. Last year, it had fixed costs of $200,000 per year, a
short-run total variable cost of $199,800, sold 90,000 food items
at an average price of $7.00 per...