Which of the Following Scenarios Best Represents a Monopoly Situation

question 202

Multiple Choice

Which of the following scenarios best represents a monopoly situation?

• A)Bill and Tom work separately from one another but both sell a very rare form of the same diamond; they are the only sellers of this type of diamond in town
• B)Bill owns the only grocery store in a small community that lies 200 miles from the nearest city
• C)Tom owns a fishing tackle shop in Miami, Florida, in which he sells all the top-of-the-line fishing equipment
• D)none of the above adequately represent a monopoly

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Definitions:

Expected Return

The expected return is the average return expected on an investment over a period.

Securities

Tradable financial instruments intended to provide returns to investors, which include equities, bonds, and options.

Portfolio

A collection of investments held by an individual or an institution, which may include stocks, bonds, and other assets.

Negative Beta

A measurement of a stock's volatility indicating that it moves in the opposite direction of the overall market.