A Monopoly Will Arise If

question 329

Multiple Choice

A monopoly will arise if

• A) two out of three of a town's pizzerias go out of business and only one new pizzeria opens.
• B) the town council passes a law granting Nick's Pizza the exclusive right to operate in that town.
• C) Papa Joe's Pizza becomes the largest pizza producer in town and Nick's Pizza stays small in size.
• D) several big pizza chains force several small pizzerias out of business.
• E) people decide they like pizza more than before so some pizzeria's gain new customers.

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Definitions:

Productive Inputs

Resources used in the production of goods and services, including labor, capital, and raw materials.

Outward Shift

A movement of the supply or demand curve to the right, indicating an increase in supply or demand.

Resources Efficiently

The effective and optimal usage of resources to maximize productivity and minimize waste.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to undertake an action.