If a Local Ready-Mix Cement Company Is the Only Producer

question 53

Multiple Choice

If a local ready-mix cement company is the only producer of cement in the local market, the monopoly power of the firm will

• A) be small if entry barriers into the local market are high.
• B) depend on how many other sellers of similar products there are in the national market.
• C) be total since there are not any other sellers of the same product in the local market.
• D) be minimal if the entry barriers restricting competition from other firms are low.

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Definitions:

Attachment

(1) The point at which a creditor becomes the secured party who has a security interest in the collateral. (2) A court order permitting a local court officer to seize a debtor’s property.

Court Order

A legal directive issued by a judge or court that requires a party to do or refrain from doing specific acts.

Debtor's Property

Assets owned by an individual or entity that owes money to creditors.

Final Judgment

The last court's decision resolving all issues between the parties in a legal action, after which the case is concluded.