The Franchise Rule Requires a Franchisor to Provide Potential Earnings

question 2

True/False

The Franchise Rule requires a franchisor to provide potential earnings figures to its prospective franchisees.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of it that consumers are willing and able to purchase at each possible price.

Marginal Revenue

The increase in total revenue that results from selling one additional unit of a product or service.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies with changes in quantity sold.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at each price level.