Recall the Application About the Costs Involved in Opening a Dunkinʹ

question 172

Multiple Choice

Recall the Application about the costs involved in opening a Dunkinʹ Donuts shop to answer the
following question(s) .
-Recall the Application. If you spend the money to become a Dunkinʹ Donuts franchise and it is in a monopolistically competitive market, you would expect in the long -run to earn zero economic profits because:

• A)barriers to entering the donut business are small.
• B)you must compete against other donut shops, bakeries, coffee shops and grocery stores.
• C)franchise fees make sellers of brand names have higher costs than other sellers.
• D)all of the above

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