Which of the Following Offers the Best Reason Why Restaurants

question 26

Multiple Choice

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.

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Definitions:

Social Anxiety Disorder

A chronic mental health condition characterized by intense fear and avoidance of social situations due to a perceived risk of negative evaluation.

Heterotypic Continuity

The concept that underlying psychological or behavioral problems remain consistent over time, even though the specific symptoms or behaviors may change.

Anxiety Disorders

A group of mental health disorders characterized by significant feelings of anxiety and fear, interfering with daily activities.

Ego Syntonia

Psychological attitudes or behaviors that are in harmony with one's ideal self-image or values.