Which of the following does not increase a McDonald's franchisee's financial stake in the success of the operation?
a. Successful owners may get additional restaurants
b. The franchise is valid for 20 years and renewable after that
c. The franchisee can safely ignore the company's standards of quality, pricing, cleanliness, hours of operation, and so on
d. The franchisee must make highly specific investments of money and time
e. The franchisee must have "non-borrowed personal resources" of at least $200,000 in cash
C
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A surprising outcome of the Rock-Paper-Scissors game is that
A) it is a clear example of a first mover advantage. B) there is no pure-strategy Nash equilibrium. C) it is best not to play the game. D) it is a good way to determine who goes first in a sequential move game.
If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then maximum profit
A) equals $336. B) equals $882. C) equals $1,218. D) cannot be determined solely from the information provided.
When the output of an economy exceeds the economy's full-employment capacity,
a. aggregate supply will increase until the economy can produce the output at the existing price level. b. the actual rate of unemployment will be less than the natural rate. c. wage rates and resource prices will tend to fall. d. interest rates will decline and help direct the economy back to full employment.
To an economist, "investment" in the GDP accounts means purchases of new final goods and services by firms.
Answer the following statement true (T) or false (F)