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A Franchise Might Be Worth $1 Million or More Because

Question 106

Multiple Choice

A franchise might be worth $1 million or more because


A) it guarantees the owner a long-run economic profit.
B) it guarantees the owner positive economic profit.
C) product differentiation results in brand loyalty,which can be very profitable.
D) it gives the owner a pure monopoly.
E) it allows the franchisee to sell a homogeneous product.

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