Author Question: McDonald's requires that franchisees provide at least 40 percent of the cost of the franchise with ... (Read 58 times)

crobinson2013 · **on:** Jun 30, 2018

McDonald's requires that franchisees provide at least 40 percent of the cost of the franchise with their own funds and work full-time daily in the restaurant. It does this in order to avoid
a. signaling and screening
b. moral hazard
c. the winner's curse
d. adverse selection
e. symmetrical information

Question 2

In Connecticut, the apple market is perfectly competitive. Suppose that consumer tastes change so that the market demand for apples increases. In that case, the demand curves faced by individual firms will
a. not change
b. become less elastic
c. shift upward
d. shift leftward
e. shift downward