Firms within the fast food industry fall under the market structure of competition.

... Babette Reppuhn Microeconomics 130 Professor Paul Briggs May 2, 2004 A Competitive Fast Food Firm Firms within the fast food industry fall under the market structure of competition. Market structure is a classification for the key traits of a market. The characteristics of a market that is competitive would include: a large number of buyers and sellers, easy entry to and exit from the market, homogeneous products, and the firm is a price taker. Take McDonalds fast food restaurant for example. In 1954, Ray Kroc became the first franchisee appointed by Mac and Dic McDonald in San Bernadino, California. He opened his first restaurant in De Plaines, Illinois (near Chicago), and the McDonald's Corporation was created. By 1959, the 100th McDonald's had opened in Chicago. In the early years of the 1960's, Ray Kroc had bought all rights to the McDonald's concept from the McDonald's brothers for $2.7 million. In 1963, the 500th restaurant had opened.

want to read more? →