Problem on fast food chains market

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.

View Complete Question

Related Questions in Microeconomics

Q : Problem on Current labor union issues I

I have a problem in economics on Problem on Current labor union issues. Please help me in the following question. The current labor union issues would comprise: (i) Public sentiment favoring the legislative control of strike powers. (ii) Reduction of

Q : Ceiling price problem When the

When the government obliged a ceiling price of P0 on papayas, the market scarcity would correspond to line: (1) ab. (2) cd. (3) ac. (4) bd. (5) ae. </span></p>
</div>

</li>

</td>
</tr><tr>
<td>

<li>
<div class=

Q : Implication of price discrimination

Price discrimination implies: (1) charging different prices for identical goods that have identical production costs. (2) paying wages based on race or sex quite than productivity. (3) exploiting the working masses by charging the highest single price

Q : Factors affecting the demand curve of

Can someone help me in finding out the right answer from the given options. Among the factors influencing the demand curve for lime flavored Doritos is the: (i) Supply of lime-flavored Doritos. (ii) . Income of snack lovers. (iii) Production costs for the Doritos (iv)

Q : Supply of good increment from the

The supply of good increases from the perspective of buyers while: (1) the government subsidizes production of the good. (2) price ceilings limit rates of return on investment. (3) queuing replaces allocation based upon high prices. (

Q : Labor Union Goals economically

Economically, the labor unions can be thought of as the: (i) encouraging competition between the workers for jobs. (ii) Rising the flexibility of nominal wages. (iii) Attempts to cartelize and unite the individual sellers of labor. (iv) Having a goal of the minimum un

Q : Declines in the international price

Declines within the international price of oil would be probably to cause the: (w) wages of bicycle factory workers to raise. (x) demand for automobiles to decrease. (y) incomes of geologists and petroleum engineers to fall. (z) price of home insulati

Q : Downward slope of consumer demand curves

Can someone please help me in finding out the accurate answer from the following question. The downward slope of the consumer demand curves for normal goods is partly described by: (i) Income effects. (ii) Diminishing marginal utility. (iii) Substitution effects. (iv)

Q : Determine the market price when demand

When both demand and supply rise within the market for cell phones, we would suppose the market price to: (w) increase. (x) decrease. (y) increase, decrease, or stay similar, depending upon the relative magnitudes of the shifts. (z) s

Q : Central problems of an economy

Elucidate the central problems of an economy: A) What to produce? B) How to produce? C) For whom to produce? Answer:

Discover Q & A

Leading Solution Library

Avail More Than 1455197 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1942855
Asked

3,689

Active Tutors

1455197

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment