A Flour Mill Holding Exclusive Contracts to 95% of the Wheat

question 113

Multiple Choice

A flour mill holding exclusive contracts to 95% of the wheat in a large geographic area may operate as a flour-producing monopoly locally because

• A) the mill has a very inelastic supply curve.
• B) the mill is a natural monopoly.
• C) the mill controls a key input.
• D) the government will declare it a monopoly.

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Definitions:

Cheerful Disposition

A consistent state of being happy, optimistic, and positive in one's outlook or mood.

Personalized Power Motive

The drive to influence or control situations in a way that is tailored to one's own interests or desires.

Appreciates

The recognition and valuing of someone's efforts, qualities, or achievements, often leading to an increase in morale and motivation.

Insightful Mind

The capability to understand and intuitively grasp complex situations, issues, or ideas.