Lesson 3 Pricing Mysteries!

Active Communication

Task 1-1

1.

Listen to the lecture and answer the questions.

Script
W :
I’d like to say something about the relationship between the number of waiters and the profit in a restaurant. Let’s imagine Jane opened a restaurant with one waiter. The food was good, but customers had to wait too long to be served. As a result, Jane’s profits were only $4,000 per month. She decided to hire a second waiter, which increased her profits to $6,000. A third waiter boosted her profits to $6,500. However, when Jane hired a fourth waiter, her profits decreased to $5,500. This shows that there is an optimal number of waiters for a restaurant. When there are too few waiters, customers have to wait too long and profits suffer. However, when there are too many waiters, they can get in each other’s way and productivity decreases. As a result, profits start to decline. The optimal number of waiters for a restaurant will vary depending on the size of the restaurant, the type of food it serves, and the number of customers it typically serves. However, this concept shows that there is a point at which adding more waiters will no longer increase profits.