When a new restaurant, Martin’s Cafe, opened in Riverville last year, many people
predicted that business at the Wildflower Inn, Riverville’s only other restaurant, would
suffer from the competition. Surprisingly, however, in the year since Martin’s Cafe
opened, the average number of meals per night served at the Wildflower Inn has
increased significantly.
Which of the following, if true, most helps to explain the increase?
A. Unlike the Wildflower Inn, Martin’s Cafe serves considerably more meals on
weekends than it does on weekdays
>> does not explain why no.of meals/night at W.Inn has increased.
B. Most of the customers of Martin’s Cafe had never dined in Riverville before this
restaurant opened, and on most days Martin’s Cafe attracts more customers than it
can seat.>> New customers coming in and they cant be seated so may be they are heading to W.Inn.
C. The profit per meal is higher, on average, for meals served at Martin’s Cafe than
for those served at the Wildflower Inn.
>> Out of scope.
D. The Wildflower Inn is not open on Sundays, and therefore Riverville residents
who choose to dine out on that day must either eat at Martin’s Cafe or go to
neighboring towns to eat.
>> Does not explain the significant increase in no. of meal serverd per night at W.Inn.
E. A significant proportion of the staff at Martin’s Cafe are people who formerly
worked at the Wildflower Inn and were hired away by the owner of Martin’s
Cafe.
>> Does not explain the situation.
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