Which of the following most clearly indicates why the franchiser of a product has a strong incentive to monitor the quality of the product among all of the franchised sellers?
A) The franchiser has a monopoly on the sale of products in his industry.
B) If quality is not maintained, the franchiser will be limited in his ability to sell other franchises and collect franchise fees.
C) If quality is not maintained, the government will prohibit future sales of the franchises.
D) Franchisers do not gain financially by maintaining quality, but they generally maintain quality anyway because they are consumers as well as producers.
Correct Answer:
Verified
Q144: Market failure will most likely arise from
Q145: People who receive the benefit of a
Q146: How does an additional individual's consumption of
Q147: A car sells at different prices at
Q148: Sellers will tend to be most concerned
Q150: When a good is nonexcludable,
A) it is
Q151: Which of the following about public goods
Q152: Manny's Bar-n-Grill is next door to a
Q153: A college has found that during every
Q154: In economics, a free rider is the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents