Constrained Decision Making Is Desirable by Both Franchisees and Franchisors

question 75

Multiple Choice

Constrained decision making is desirable by both franchisees and franchisors in that it generates ________.

• A) lower royalty and rental costs
• B) independence from franchisor rules and regulations
• C) intrafranchise competition
• D) uniformity across all chain units

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Definitions:

Marginal Products

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Sales Clerks

Employees in retail stores responsible for assisting customers, conducting transactions, and maintaining the arrangement of goods.

Customers Served

A measure of how many clients or customers a business, organization, or service has provided for in a given period.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.