use specific examples from the scenario to explain why there may be economies or diseconomies of scope.

Scenarios are attached as pictures.
Activity Instructions
Read the following scenarios and complete the corresponding questions. Must be at least 3 pages long. Please remember to answer in complete and grammatically correct sentences. I am looking for your thought process in the answers to the questions, so be complete in your answers and use the opportunity to clearly demonstrate your newly acquired knowledge.
In the second question there is a lot of information and you may feel like you have been overloaded with information. I would suggest focusing on the information required for each section. For instance for the second part of that question, the only relevant information is about the beer–so the elasticity of demand (-0.8), the current price ($4.50), the proposed price ($4.00) and the current quantity (250). All the other information about the wine, entrees, and appetizers can be disregarded for that part of the question.
For the third part of that question, you can also reduce the amount of information you need to consider. Take the other three goods individually, and if you do that you need only consider the cross-price elasticity of demand, the percent price change in beer (from the previous part) and the current quantity of that good to calculate the predicted number of sales of that good. Also, I would suggest leaving your results to at least one decimal place; while it may not make sense to sell 0.5 of a beer or 0.68 of an appetizer, remember that these are predictions of the average number of sales each night in the future. It is definitely possible to sell 43 appetizers one night and 46 the next, resulting in an average of 44.5.
For the third question, use specific examples from the scenario to explain why there may be economies or diseconomies of scope. In other words, do not just assert that a smaller menu does something, but explain why what you claim could occur in a restaurant.