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.

---

Definitions:

Calorie Limit

A nutritional guideline specifying the maximum number of calories to be consumed in a day to maintain or achieve certain health goals.

Seafood Salads

A dish made primarily of various types of seafood and mixed with vegetables, dressings, or other ingredients, often served cold.

Budget Set

The collection of all possible combinations of goods and services that a consumer can afford with a given budget at current prices.

Price Reduced

A decrease in the cost at which goods or services are sold, typically to stimulate demand or clear inventory.