In 2011, Red Robin Announced That It Would Open 12

question 49

Multiple Choice

In 2011, Red Robin announced that it would open 12 fast-casual restaurants, and in 2016 the company decided to abandon the fast-casual restaurant business.Which of the following reasons relating to the characteristics of monopolistic competition did the company give for getting out of the fast-casual restaurant business?

• A)Barriers to entry were too high.
• B)The restaurants were not differentiated enough from their full-service restaurants.
• C)There were very few buyers and sellers in the market.
• D)Standardized pricing in the industry gave them no potential to earn a profit.

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Definitions:

Nanoplankton

Extremely minute (<10 μm in length) algae that are major producers in the ocean because of their great abundance; part of phytoplankton.

Dinoflagellates

A group of single-celled organisms found in marine and freshwater environments, known for their role in red tides and bioluminescence.

Symbiotic

A close and often long-term interaction between two different biological species, which may be beneficial, harmful, or neutral to the parties involved.

Zooxanthellae

Endosymbiotic, photosynthetic dinoflagellates found in certain marine invertebrates; their mutualistic relationship with corals enhances the corals’ reef-building ability.