>> If there is $1 extra that the fast food owner is caching, why does no other fast food restaurant open in the area, offering $1 cheaper prices, and steall all

>> If there is $1 extra that the fast food owner is caching, why does no other fast food restaurant open in the area, offering $1 cheaper prices, and steall all the clients? This is exactly the point of the dollar menu/value menu/whatever promo is going on at the time. They do exactly this. Also, fast food economics are basically "Get the customer in the door. Take their order. Do all you can to sell them sodas and fries. Break even everywhere else."