Tuesday 25 September 2012

The Diner City Game

The Diner City Game makes us aware of real economic principles. It is a perfect example of competition, which is one of the four C’s of the economic system. The premise of the game is that the restaurants compete against another restaurant.  In the real world, many businesses compete against each other. The game also shows us what the other restaurant is doing i.e. number of employees working or seats available. To manage the business, you must be aware of what your competitors are doing so that you can make correct decisions and remain competitive.

The Game shows the cost of opportunity, deciding between putting extra seats (Capital Assets) or hiring an employee (Factors of Production) or raising the revenue per customer (Revenue).The player has to give up something to gain another alternative. Also, the choices must be made between resources to maximize the revenue.

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