All of the Following Are Considered Advantages of Franchising Except

question 44

Multiple Choice

All of the following are considered advantages of franchising except

• A) reduced risk of failure.
• B) access to a proven system.
• C) restricted sales territories.
• D) immediate economies of scale.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus in a market; it measures the total benefit to society from the production and consumption of goods and services.

AC

Average Cost, which is the total cost of production divided by the quantity of output produced.

Monopolist

A single seller in a market who has significant market power and can influence the price and quantity of goods or services.

AC

Average Cost; the total cost of production divided by the quantity produced, indicating the cost per unit of output.