Multiple Choice
AutoCorp is a reputed automobile manufacturer while SUVmart is an independent distributor who buys automobiles from the former.During the current year,SUVmart wants to buy 250 Rhinos from AutoCorp who wants to charge an upfront franchise fee.The franchise fee charged by it:
A) can be anything below MC so as to guarantee SUVmart's profits.
B) can be anything above MC so as to guarantee some profits for AutoCorp.
C) has to be equal to TC so that AutoCorp breaks even on the deal.
D) has to be equal to MC.
Correct Answer:
Verified
Correct Answer:
Verified
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