Which of the Following Offers the Best Reason Why Restaurants

question 56

Multiple Choice

Which of the following offers the best reason why restaurants are not considered to be perfectly competitive firms?

• A)Restaurants do not sell identical products.
• B)Restaurants compete in small market areas - neighbourhoods and cities - rather than in regional or national markets.Therefore, restaurants are not small relative to their market size.
• C)Restaurants usually have entry barriers in the form of zoning restrictions and health regulations.
• D)Restaurants have significant liability costs that perfectly competitive firms do not have; for example, customers may sue if they suffer from food poisoning.

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Definitions:

Permissive Neglectful

A parenting style characterized by a lack of responsiveness to a child's needs and a general disengagement from the child's life.

Concrete Operations

A phase within Piaget's cognitive development theory where kids develop the skill to logically process actual occurrences.

Conservation

The management of resources to prevent depletion or harm, ensuring their sustainability for future generations.

Temperament

The innate aspect of an individual's personality, including disposition, mood, and emotional reactivity, observable from a young age.