What key assumption for perfect competition would lead you to believe that fast food is not a perfectly competitive industry explain why.
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If an increase in autonomous consumption spending of $25 million results in a $100 million increase in equilibrium real GDP, then
A) the MPC is 0.25. B) the MPC is 0.75. C) the MPC is 0.8. D) the MPC is 2.5.
If a Pizza Hut restaurant near campus reduces its pizza prices by 15 percent, and as a result, its total revenue from pizza sales increases, this indicates that the price elasticity of demand was
a. elastic. b. of unitary elasticity. c. inelastic. d. equal to 0.15.
A limit on the quantity of a good that may be imported in a given time period is
A. An import allocation. B. A comparative advantage. C. An import quota. D. A tariff.
A firm with market power faces the following estimated demand and average variable cost functions:Qd = 39,000 - 500P + 0.4M - 8,000PRAVC = 30 - 0.005Q + 0.0000005Q2where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The firm expects income to be $40,000 and PR to be $2. Total fixed cost is $100,000. What is the estimated demand function for the firm?
A. Qd = 40,000 - 200P B. Qd = 39,000 - 500P C. Qd = 39,000 - 200P D. Qd = 71,000 - 500P