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When a new restaurant, Martin's Cafe, opened in Riverville

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When a new restaurant, Martin's Cafe, opened in Riverville

by BTGmoderatorDC » Thu Sep 27, 2018 5:04 pm
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.
(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.
(C) The profit per meal is higher, on average, for meals served at Martin's Cafe than for those served at the Wildflower Inn.
(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.
(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.

OA B

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by deloitte247 » Fri Sep 28, 2018 8:52 am
Option A - INCORRECT.
However, unlike the Wildflower Inn, it is possible that Martin's Cafe serves considerably more meals on weekends than it does on weekdays, that is why Wildflower Inn is still increasing in their sales per night.

Option B - CORRECT.
This option has helped to describe why there is an increase sales in Wildflower Inn compared to other restaurant in Riverville. It can be assumed that Martin's cafe has opened his restaurant next to Wildflower Inn and most of the customers of Martin's Cafe had never dined in Riverville before the restaurant was opened. Also, on most days Martin's Cafe attracts more customers than it can seat therefore, customers who could not bear the increasing rush in Martin's cafe would be left with no choice than to dine with Wildflower Inn while they try to patronize Martin's cafe next time. However, the decision of the customers of Martin's cafe customers to try other close restaurant like Wildflower has increased their sales per night.

Option C - INCORRECT.
The statement made in this option would also have increased the sales of Wildflower Inn compared to other restaurant. The profit per meal served at Martin's Cafe is possibly higher compared to meals on average price at Wildflower Inn.

Option D - INCORRECT.
There was no consideration of days at which the restaurant open in the argument, therefore, Wildflower Inn if possible does not open on Sundays then Riverville residents who choose to dine out on that day must either eat at Martin's Cafe or go to neighboring towns to eat. Therefore, no increase in sales for Wildflower Inn for that day.

Option E - INCORRECT.
This statement is not in support of why there is a significant increase in Wildflower Inn amidst competitions. If truly, a significant proportion of the staff at Martin's Cafe were people who formerly worked at the Wildflower Inn and were hired away by the owner of Martin's Cafe, then there won't be an increase in sales of meals served at the restaurant because most customers of Wildflower Inn would have crowed Martin's Cafe knowing that it is their favorite staffs that works there now.
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