In a Monopoly Situation, There Is No Close Substitute for a Product

question 109

True/False

In a monopoly situation, there is no close substitute for a product or service.

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Definitions:

Metcalf's Law

Metcalfe's Law states that the value of a telecommunications network is proportional to the square of the number of connected users of the system, emphasizing the exponential value increase with more users.

Technology Sea Change

A significant and fundamental transformation in technology that leads to wide-reaching changes in society or industry.

Customer Acquisition Costs

The expense associated with convincing a consumer to buy your product or service, including research, marketing, and advertising costs.

Increased Profitability

Increased profitability signifies a rise in the difference between a business's revenues and its expenses, indicating improved financial performance.