McDonald's, Burger King, and Wendy's all produce hamburgers, among other things. However, if you prefer burgers from McDonald's, you might consider other burgers an imperfect substitute. With this in mind, which of the following statements would be correct about McDonald's prices in the short run?
a. McDonald's will maximize profits by producing where marginal revenue equals marginal cost.
b. McDonald's will charge a price higher than marginal revenue and marginal cost.
c. McDonald's will charge a price equal to marginal cost.
d. McDonald's will set its prices like a perfect competitor.
e. McDonald's consumers will pay a higher price as long as it is worth the value they place on their preference for McDonald's burgers.
f. McDonald's will set its prices like a monopolist.
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