One really successful business that has flourished recently is the well-known food chain "In and Out Burger." One reason for their success may include their decision to expand and increase their number of locations, but I see the main reason as their decision to keep prices low. A regular cheeseburger at In and Out costs $2.50, while many other popular restaurant chains price their burgers anywhere from six to eight dollars. Keeping the price low increases demand and decreases the competition with these other chains. Unfortunately, they may not ultimately decide they need to increases prices in order to reach equilibrium. As many know, In and Out has expanded to Midway Road and the grand opening was just a few days ago. If you have been in or around this location since the opening, you most likely have noticed the numbers of both workers and customers are excessive. Right now and for the next few weeks business will be better than ever because people have been anticipating and building up excitement for the opening. However, once the initial boom of business dies down In and Out will have some decisions to make. They will have to balance out the supply of workers with the demand of the customers. They will have to begin calculating their marginal production of labor and marginal production per worker. In and Out still has some work to do, but they are doing a great job of satisfying their customers so far.
-Morgan C.
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