It Has Been Said That Many of the Patrons in McDonald's

question 153

Multiple Choice

It has been said that many of the patrons in McDonald's restaurants in foreign locations are American tourists. A likely reason why many Americans dine at McDonald's while vacationing abroad is

• A)they can't get enough McDonald's food when they are at home.
• B)they know and trust the quality associated with the McDonald's brand name.
• C)the food at local restaurants is of inferior quality.
• D)that Americans, by their nature, are not very adventurous.

---

Definitions:

Natural Monopoly

A market situation where due to high fixed costs or barriers to entry, it is most efficient for production to be concentrated in a single firm.

Economies Of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Monopolist

A solo seller in a market who has significant control over the pricing and availability of a unique product or service.

Profit-Maximizes

The method or approach of modifying production and pricing to secure the maximum achievable profit.