Decide whether given statements is true or false and explain why. Fast food chains such as McDonald’s, Burger King, and Wendy’s operate all over the United States. Thus the market for fast food is a national market.
This statement is false. Generally people buy fast food within their present location and do not travel large distances across the United States just to purchase a cheaper fast food meal. Given there is little potential for arbitrage among fast food restaurants which are located some distance from each other, there are likely to be multiple fast food markets across the country.