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Maru [420]
3 years ago
13

Ravi wants to be his own boss and run his own business. His friend, Josh, suggested that an inexpensive way to get started is to

buy a franchise. Therefore he can limit his risk and he will have the freedom to run it exactly as he wants. After reading this, what will you advice him?
Business
1 answer:
sladkih [1.3K]3 years ago
8 0

Answer:

This is false. buying a franchise is expensive, as it involves buying the rights of a business from the business owners, who are commonly referred to as ''franchisiors".

Explanation:

Ravi would not be able to run the franchise business the way he wants as the Franchisiors determines the business model and procedures. Hence, he would have a limited control on the business. Thus, I would advise Ravi to avoid going into a Franchise business, if his motive is to be his own boss and have control on his business.

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Answer:

A. average total cost is rising.

Explanation:

Whenever marginal cost is more than average cost it means it costs more to produce a unit now compared to the average cost of the previous units. Lets assume that a company produces 3 units  of a good.

The first unit costs $1

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The first unit costs $1

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