|
May 06, 2009
Guerrilla Economics: Chicken in Memphis
Controversy abounds over a decision by the local KFC franchisee to not offer grilled products because retrofitting existing restaurants would be too expensive. Taking my cue from Don Boudreaux, I sent the following to the local paper: In its discussion of the local KFC franchisee's decision not to offer grilled products because the special grills would be too expensive, the Commercial Appeal editorialized on May 6 that "it seems reasonable to invest money now for customers who might still be around to buy the product several years later." Perhaps. If the Commercial Appeal is right, then the local KFC franchisee has missed an opportunity to turn a tidy profit by selling grilled products. This means that there is an opportunity for KFC's critics to earn profits by offering their own grilled chicken. If they don't, we can safely conclude that the KFC franchisee has made the right decision. Competition means that unexploited profit opportunities do not stay unexploited for very long. If offering grilled products would be a good business decision, then I encourage the KFC franchisee's critics to stop squawking, enter the market, and show us all the error of our ways by earning profits in the market for grilled chicken. Posted by Art Carden at 10:45 AM in Economics
|
The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith
Our Bloggers
Joshua HallRobert Lawson E. Frank Stephenson Michael C. Munger Lawrence H. White Craig Depken Tim Shaughnessy Edward J. Lopez Brad Smith Mike DeBow Wilson Mixon Art Carden Noel Campbell
Search
Archives
By Author:
Joshua HallRobert Lawson E. Frank Stephenson Michael C. Munger Lawrence H. White Edward Bierhanzl Craig Depken Ralph R. Frasca Tim Shaughnessy Edward J. Lopez Brad Smith Mike DeBow Wilson Mixon Art Carden Noel Campbell
By Month:
February 2012January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011 December 2010 November 2010 October 2010 September 2010 August 2010 July 2010 June 2010 May 2010 April 2010 March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 2009 December 2008 November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005 July 2005 June 2005 May 2005 April 2005 March 2005 February 2005 January 2005 December 2004 November 2004 October 2004 September 2004 August 2004 July 2004
Powered by
Site design by |