Efficiency or Gimmick? You Decide.

Media Type: Office Hours Topic: Marginal Thinking, The Firm

In this clip I examine the marginal costs and marginal benefits of serving small dishes of sushi using conveyor belts. Customers do not formally order their food, instead thay grab different dishes off of the conveyor belt that loops around the restaurant. This gives value-minded customers an opportunity to to eat as much (or as little) as they want without wasting food. There is also a labor-capital trade off at work here since these sushi restaurants deploy less labor and rely on the conveyor belt to do most of the service.

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