1. (30 points) Making Decisions at the Margin. In 2013, the president and chief executive office of McDonald’s, Don Thompson, said that McDonald’s was considering serving breakfast all day, instead of stopping at 10:30 am on weekdays and 11 am on weekends. Several owners of McDonald’s restaurants, however, point out that offering breakfast 24 hours a day presents two logistical problems: a. Burgers and other meats need to be cooked at a higher temperature than eggs, so it would be difficult for employees to set the grill at the right temperature for both foods, and b. Scrambled eggs require employees to continually stir, while hamburgers don’t require this attention. In addition, some customers might buy the cheaper breakfast rather than the more expensive lunch or dinner meals. If you were the present and chief executive officer of McDonald’s, discuss how you would go about deciding whether to serve breakfast all day. Would your decision have to be all or nothing—either serve breakfast up to 10:30 am or serve breakfast all day? Would you have to serve the entire breakfast menu all day? Requirement: minimum 100 words.
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