In Exchange for a Share in the Revenues Earned on Campus,State

question 56

Multiple Choice

In exchange for a share in the revenues earned on campus,State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus.Prior to the deal,three soft drink companies sold beverages on campus;now no other soft drink company is allowed to sell its products on campus or at university events.
Refer to the information above.CheapFizz now has market power due to:

• A)the economies of scale gained by having more sales on campus.
• B)the grant of a patent.
• C)the grant of an exclusive license to sell.
• D)network economies caused by all students consuming their product.

---

Definitions:

Anticipated Inflation Rate

The inflation rate that individuals and businesses expect to prevail in the future, influencing their economic decisions.

Real Wage Increases

Adjustments in wages that are above the rate of inflation, resulting in an increase in purchasing power for the wage earner.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.

Borrowers

Individuals or entities that take out loans from financial institutions or other sources, committing to repay them over a specified period, often with interest.