A Monopoly Can Have a High Degree of Market Power

question 115

Multiple Choice

A monopoly can have a high degree of market power because of all but

• A)Control over key inputs.
• B)Government-bestowed franchise rights.
• C)A downward-sloping demand curve for its product.
• D)The presence of many close substitutes for its product.

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Definitions:

Grapevine

Internal information channel that transmits information from unofficial sources.

Informal Communication Channel

Messages outside formally authorized channels within an organization’s hierarchy.

Stock Options Plan

A benefit plan that gives employees the option to buy company shares at a future date at a predetermined price.

Company Stock

Shares of ownership in a corporation, representing a claim on the company's assets and earnings.