Which of the Following Offers the Best Reason Why Restaurants

question 26

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-neighborhoods 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:

Reading Skills

The abilities that enable an individual to decode written text, comprehend it, and derive meaning from it.

Multiple Perspectives

The consideration or analysis of a situation, problem, or concept from various viewpoints to gain a comprehensive understanding.

Phonological Awareness

The recognition and understanding of the sound structure of language, including the ability to manipulate sounds.

Syllables

Units of organized sequential sounds in spoken language, serving as the building blocks of words.