What Do Spotify and Apple Have in Common

question 123

Multiple Choice

What do Spotify and Apple have in common?

• A)Each achieved a dominant position in its industry because it owned a key input in the production of its product.
• B)The industry in which each firm competes is an oligopoly because of government-imposed barriers to entry.
• C)Each company was founded in the same state.
• D)The profitability of each firm depends on its interactions with other firms.

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Definitions:

Level of Output

The total amount of goods or services produced in an economy over a certain period of time.

Government

The organization, machinery, or agency through which a political unit exercises authority and performs functions and which is usually classified according to the distribution of power within it.

Monopoly

A market structure characterized by a single seller selling a unique product in the market, leading to limited competition.

Policymakers

Individuals or groups responsible for making decisions in government that influence laws, regulations, and policies.