1. Franchise Contracts natural monopoly
Large private monopolies usually end up using their market power to produce below the socially efficient level and therefore are not allocative efficient. ... The contract length. Demsetz chose in his example a one-year contract. ... The problem of human asset is also bound to the length of the contract. ... The first part of this paper has emphasised the fact that franchising contracts...
- Word Count: 1848
- Approx Pages: 7
- Grade Level: Undergraduate