Requires significant portion of the product franchisee

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Reference no: EM132184122

1. Very often, a Franchisor requires a significant portion of the product a Franchisee to be purchased either from the Franchisor directly or from an "approved" supplier. Also often, the Franchisor makes additional income as a result of these requirements. This requirment has resulted historically in a signficant number of lawsuits (Franchisee's suing Franchisors). Why would this be a legal concern, and on what basis would the Franchisee have standing to sue the Franchisor?

2. Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit. Process B’s fixed cost is $4,000 and variable cost is $2.60/unit. Process C’s fixed cost is $8,000 and variable cost is $2.40/unit.

Over what output range would Process C be preferred?

Reference no: EM132184122

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