My mother has always desired to be a successful restaurant owner. She loved the idea of serving delicious food, while also making large profits! Unfortunately, she was rarely successful in her endeavors. For example, in the Fall of 2005, my mother opened up a new restaurant named Asian Bowl in Arlington, Texas. Asian Bowl served authentic Asian food at an affordable cost!
Being the son of the sole proprietor owner, I was ecstatic!; this meant free restaurant food anytime I wanted.
However, after three long years, Asian Bowl never saw signs of a positive accounting profit, in which the revenue exceeded the total cost. This got me wondering; if Asian Bowl continuously to have its Marginal Revenue less than the Long-Run Average Total Cost,