The profit margins for fast food firms like Wendy's have fallen because of an increase in competition from similar fast food chains and microwaveable food available in supermarkets. Based on this information, which of the following is true?
A) The elasticity of demand for Wendy's fast food is relatively inelastic.
B) Wendy's operates as a monopoly firm in the fast food market.
C) The fast food market is monopolistically competitive.
D) Wendy's fast food is an inferior good for most consumers.
E) There are strategic entry barriers in the fast-food market.
Correct Answer:
Verified
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