In the context of market structures,franchising fees represent which aspect for monopolistic competition?
A) number of sellers
B) product differentiation
C) barriers to entry
D) product substitutes
E) marginal cost

Question

Quizplus · Accepted Answer

Franchising fees represent a barrier to entry because they make it more difficult for new firms to enter the market and compete with existing franchised firms, thus reducing the number of sellers. This is a characteristic of monopolistic competition where there are a limited number of firms in the market due to barriers to entry.

In the Context of Market Structures,franchising Fees Represent Which Aspect