why restaurants have different menus

I regularly eat out on every Saturday, recently I visited a restaurant which has long list of items in their menu and also saw some hotels providing less varities compared to the big restaurants. So, I got curious and observed and found out the economic concept that is taking place.

 We all know that human wants are unlimited, but the resources to satisfy that wants are limited. Therefore, it becomes necessary to choose between the most urgent wants to satisfy with the money we have. In order to get maximum satisfaction we weigh the satisfaction got form each rupee and spend it in a way that the last rupee spent on each good gives the same level of satisfaction.

This law has also great importance in producers point of view as he want to maximise his profits out of the resources available to him. For this purpose he have to substitute one factor to other to maintain the most economical combination. That is why the restaurants provide different menus depending on the resources to maximize their profits.