The Main Goal of Franchising for the Franchisor, Such as Wendy's

question 97

Multiple Choice

The main goal of franchising for the franchisor, such as Wendy's or Dunkin Donuts, is

• A) use of the brand name.
• B) as a test for potential future acquisitions.
• C) growth.
• D) access to technology.

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Definitions:

Law of Diminishing Marginal Returns

A rule of economics that asserts when a single production element is expanded and the rest stay unchanged, there will ultimately be a decline in total output after reaching a specific threshold.

Cost Curves

Graphical representations in economics that show how the costs of production vary with different levels of output.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, holding all other inputs constant.

Variable Input

An input in the production process that can be adjusted in the short term, such as labor or raw materials, to change the output level.