What is the relationship beetween costs and prices in restaurants?

Answer 1

The relationship is known as prestige priceing in Economy
It means delibrate setting of high prices to attract snobish customers

Answer 2

there is a lot of economic variables as to why plate prices in restaurants are set....

you have to look at the overall picture....
how much does that commodity cost wholesale
how many production hours are put into creating the dish
perhaps it's something that is trendy in society...eg. sushi
it may not cost that much to make however due to the demand
and popularity they will increase the price because they know their customers are willing to pay.

Answer 3

Hotels and Watches are the two industries that has the highest profit margine on sales. It is around 35%. Hotels are pure competition in structure. They maximise their profits when the marginal revenue=marginal costs. So lesser you have overheads for the hotels the faster you will reach your profit maxima. Variable costs you cannot control. So total cost=variable cost + fixed cost and the profit is maximised when the average variable cost is minimum and average fixed cost is above minimum. So you price at average fixed cost+average variable cost in the above manner.

Answer 4

The price always wins

Answer 5

of course there is ... cause it is a main factor in setting prices

for ex, a plate of shrimps would be priced more than chickenz, why ??

cause shrimps are more expensive than chickenz :)