Scenario: the Following Excerpt Is from "Throwing the Book at Apple

question 121

Multiple Choice

Scenario: The following excerpt is from "Throwing the Book at Apple" (Wall Street Journal, Review and Outlook, June 12, 2013) :
At the time, prior to the existence of the tablet device market that Jobs created with the iPad, Apple did not sell e-books. Amazon sold nine of every 10. Justice claims Jobs then forced Amazon and every other e-book distributor to adopt a new e-book pricing model that harmed consumers.
Yet the average retail price for "trade" e-books has since dropped to $7.34 from $7.97, and Amazon's Kindle is still the industry leader with Apple trailing in third. Over the same period readers bought 447% more e-books, and they can choose from dozens of tablets for titles and other media content.
-Refer to the scenario above.What market structure best describes the e-book market?

• A) A monopoly
• B) A competitive market with a few dominant firms producing substitutes
• C) A competitive market with a few dominant firms producing identical goods
• D) A perfectly competitive market

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Definitions:

Socially Optimal

Pertains to a condition where resources are allocated in the most efficient manner from the perspective of society as a whole.

Pollution

The presence or introduction of harmful substances or contaminants into the natural environment, causing adverse effects.

Emissions Standard

Regulations that set limits on the amount of pollutants that can be emitted from sources like vehicles and factories.

Pollution

The contamination of the environment by harmful or poisonous substances, leading to detrimental effects on living organisms and the natural habitat.