What do you think will happen to the average total cost as these restaurants/dining services become more well-known and they are able to sell more food? Explain.

As restaurants or dining services become more well-known and sell more food, the average total cost is likely to decrease. This is due to the concept of economies of scale. Here's a step-by-step explanation:

1. Economies of Scale: As the volume of production increases, the cost of producing each unit often decreases. This is because fixed costs (like rent, utilities, and salaries) are spread over a larger number of units.

2. Increased Demand: As the restaurant becomes more well-known, it can sell more food. This increase in sales volume can lead to a decrease in the average total cost per unit.

3. Bulk Purchasing: With an increase in food sales, the restaurant can buy ingredients in larger quantities, which can also lead to cost savings due to bulk purchasing discounts.

4. Efficiency Improvements: As the restaurant serves more customers, it can also find ways to improve efficiency, such as optimizing food preparation processes, which can further reduce costs.

5. Pricing Power: Finally, a well-known restaurant may have more pricing power, allowing it to increase prices and further improve profitability.

However, it's important to note that this isn't always the case. If the restaurant expands too quickly, it may face diseconomies of scale, where the average total cost starts to increase due to the added complexity of managing a larger operation.