question archive A franchise might be worth $1 million or more because: a
A franchise might be worth $1 million or more because: a
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A franchise might be worth $1 million or more because:
a. it guarantees the owner a long-run economic profit.
b. it allows the franchisee to sell a homogeneous product.
c. it gives the owner a pure monopoly.
d. it guarantees the owner positive economic profit.
e. product differentiation results in brand loyalty, which can be very profitable.
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A franchise might be worth $1 million or more because if a person granting a franchise will only have the exclusivity to sell the products on the covered geographical area. This is a characteristic of a monopoly and therefore, the correct answer is C.
