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Tipping in Restaurants | Homework Help Websites

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November 13th, 2018

Read and answer case study questions in APA format with 2-3 references

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Managerial Economics and Organizational Architecture, sixth Edition

 

Chapter 11 Organizational Architecture

ANALYZING MANAGERIAL DECISIONS: Tipping in Restaurants
In most restaurants, waiters receive a large portion of their compensation through tips from customers. Generally, the size of the tip is decided by the customer. However, many restaurants require a 15 per-cent tip for parties of eight or more. Using the concepts from this chapter, discuss (a) why the practice of tipping has emerged as a major method of compensating the wait staff, (b) why the customer typically decides on the amount of the tip, and (c) why restaurants require tips from large parties.

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