Five year old economics

M has an amazingly good grasps of business economics. We drove pass our favorite family restaurant today. I told them that the business is closing. M was disappointed of course. This conversation follows: M: why did they close. Me: they do not make enough money. M: I see lot of people there when we were there! Me: they still done have enough customers. M: I know, we can pay them more money each time. Me: I don't think that will be enough. M: they can charge everyone more money? Me: I don't think people will pay that. M: how about they make all their other restaurants pay their money to this one?

Great biz thinking I'd say.