Recall the Application about the costs involved in opening a restaurant to answer the following question(s).Recall the Application. Which of the following prevents the restaurant industry from being classified as a monopoly?
A. There are many restaurant chains in the industry.
B. There is easy entry. All an entrepreneur needs is to pay the franchise fee and the royalties.
C. Restaurants are differentiated based on location and price.
D. All of these are reasons why the restaurant industry is not a monopoly.
Answer: D
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A) less than if that event was unanticipated B) greater than if that event was unanticipated C) the same as would develop if that event had never occurred D) dependent on whether or not that event is temporary or permanent
__________ Theory claims that individuals seek to develop relationships that will maximize the benefits or profits and minimize the costs or deficits
a. Elbing b. Social Exchange c. Life Sciences d. Ostrich Effect
Which of the following does not hinder growth in developing countries?
A. Education B. Disease C. Instable governance D. Geography
A monopoly realizes larger profits than a comparable competitive market by
A. Reducing production and pushing prices up. B. Producing a greater quantity at the competitive price, thereby increasing profits. C. Producing at output levels with more favorable cost structures and charging the competitive market price, thereby increasing profits per unit. D. Setting a higher price at the competitive level of output, thereby increasing total revenue.