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The Economic Theory of Specifi he Economic Theory of Specifi c Investments and

Posted by: labeen27 on 12/01/2017 01:41 AM

A franchisor would like its franchisees to make specifi franchisor would like its franchisees to make specifi c investments and to c investments and to exert effort and creativity to increase sales while minimizing downstream costs. xert effort and creativity to increase sales while minimizing downstream costs. However, franchisors will fear that a franchisee may take advantage of any posi- owever, franchisors will fear that a franchisee may take advantage of any position it might have as a local monopoly, charging consumers more while trying to ion it might have as a local monopoly, charging consumers more while trying to pass along unnecessarily high costs to the franchisor
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Topic: Example Topic 2

 

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