it is essential to find the maximum price that people are willing to pay without feeling ripped off;2. markups can be justified by offering a better level of customer service, using higher quality ingredients, or adding a certain level of authenticity to the service landscape to provide a more engaging and interactive dining experience. Question 3a) Vera's Kitchen fits into the following distribution chain:Farmer -> Food Processing Company -> Restaurant (Vera's Kitchen) -> CustomerVera's Kitchen purchases some ingredients from food processing companies, such as Maple Leafs, Kraft Foods, etc., turns them into meals and sells them to the customer. When it comes to certain types of products (for example some seasonal fruits and vegetables), Vera's Kitchen purchases raw materials directly from local producers (farmers) and then adds more value by preparing the final meal and selling it to the customer. In this case the distribution chain looks like this: Farmer -> Restaurant (Vera's Kitchen) -> Customer.b) I don't think the entrepreneur should adopt any form of vertical integration, either upstream or downstream. Upstream integration might be a good idea for some restaurants for several reasons: Concessions are scarce or expensive
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