The market for fast food has thousands of restaurants and millions of potential customers. It is relatively easy to open a fast-food restaurant. Buyers are aware of their options and the prices of those options. However, some restaurants specialize in hamburgers, and others specialize in fried chicken. Which feature of a perfectly competitive market does the market for fast food violate?

Question

Quizplus · Accepted Answer

The market for fast food violates product standardization because different restaurants specialize in different types of food (e.g., hamburgers vs. fried chicken), indicating that the products are not standardized across the market.

The Market for Fast Food Has Thousands of Restaurants and Millions