Jason owns a dozen fast food hamburger franchises in the area. To dist

QUESTION

Jason owns a dozen fast food hamburger franchises in the area. To distinguish his stores from the other burger options in the area and increase sales, he is implementing a delivery service.

Which free-market model characterizes Jason’s restaurants?
A) perfect competition
B) oligopoly
C) monopoly
D) service economy
E) monopolistic competition

ANSWER

Answer: E
Explanation: E) Because fast food burgers offered by the many different chains are similar, sellers differentiate themselves with other strategies, such as brand awareness and delivery.