Which of the following offers the best reason why restaurants are not considered to be perfectly competitive firms?
A) Restaurants do not sell identical products.
B) Restaurants compete in small market areas—neighborhoods and cities—rather than in regional or national markets. Therefore, restaurants are not small relative to their market size.
C) Restaurants usually have entry barriers in the form of zoning restrictions and health regulations.
D) Restaurants have significant liability costs that perfectly competitive firms do not have; for example, customers may sue if they suffer from food poisoning.
Answer: A
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When the federal government owns parks that are funded by tax dollars,
a. park managers receive full information about visitor desires and make decisions accordingly. b. the same incentive structure exists for public park managers as private park managers. c. park managers devote much time and effort to satisfying political desires instead of visitor desires. d. park managers will be less likely to mismanage the park.
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The demand curve shows the relationship between:
A. money income and quantity demanded. B. price and production costs. C. price and quantity demanded. D. consumer tastes and quantity demanded.