Suppose that all operators of fast-food restaurants must rent the land for their establishments from other landowners.

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Suppose that all operators of fast-food restaurants must rent the land for their establishments from other landowners. All other aspects of the costs of fast-food establishments are identical. Why would rents differ among fast-food locations? Would these differences in rents necessarily cause differences in the prices of fast food? What do you make of the claim by Mr. Z that "I simply can't make a go of my McDonald's franchise on the interstate-the landowner just wants too much rent"?
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Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

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