To Maintain a Monopoly, a Firm Must Have

question 107

Multiple Choice

To maintain a monopoly, a firm must have

• A)a perfectly inelastic demand.
• B)an insurmountable barrier to entry.
• C)marginal revenue equal to demand.
• D)few competitors.

Understand the historical development of franchising and its impact on the economy.

Recognize the significance of exclusive territories and how they affect franchise operations.

Understand the key considerations and questions a potential buyer should explore before purchasing a franchise.

Identify the role and functions of the American Franchisee Association.

---

Definitions:

Genetic

Relating to genes or heredity and the study of how traits are passed from parents to offspring.

Trait-Situation Interaction

A concept in psychology that suggests individuals' behavior is determined by the interaction of their personality traits and environmental situations.

Modern Psychoanalytic Theory

An evolution of Freudian psychoanalysis that may incorporate social, cultural, and interpersonal dynamics in understanding the psyche.

Freud's Theory

A psychoanalytic framework proposed by Sigmund Freud that emphasizes unconscious processes and childhood experiences in shaping personality.