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Recall the Application about the costs involved in opening a Dunkin' Donuts shop to answer the ...

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Recall the Application about the costs involved in opening a Dunkin' Donuts shop to answer the ...

Recall the Application about the costs involved in opening a Dunkin' Donuts shop to answer the following question(s).

Recall the Application. Which of the following prevents Dunkin' Donut from being classified as a monopoly?

▸ There are many sellers of donuts other than Dunkin' Donuts.

▸ Donuts are differentiated products that have many close substitutes.

▸ There are no patents or regulations that prevent entry. All an entrepreneur needs is to pay the franchise fee and the royalties.

▸ All of the above prevent Dunkin' Donuts from being classified as a monopoly.

Textbook

Microeconomics: Principles, Applications, and Tools

Edition: 8^th

Authors: O'Sullivan, Sheffrin, Perez

Read 108 times

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