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:

Environment

The surroundings or conditions in which a person, animal, or plant lives or operates.

Psychosocial Stages

A concept in Erik Erikson’s theory of psychological development, outlining eight stages from infancy to adulthood, each characterized by a specific conflict.

Erikson

Refers to Erik Erikson, a psychologist known for his theory on the psychosocial development of humans.

Crisis Or Conflict

A crucial or decisive point or situation, often requiring a choice between opposing viewpoints, values, or interests, which can lead to a dispute.