The Simplest Way for a Monopoly to Arise Is for a Single

question 167

Multiple Choice

The simplest way for a monopoly to arise is for a single firm to

• A)decrease its price below its competitors' prices.
• B)decrease production to increase demand for its product.
• C)make pricing decisions jointly with other firms.
• D)own a key resource.

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Definitions:

Whitening Agents

Substances used to lighten the color of materials, such as textiles, paper, and in cosmetic formulations to lighten the skin.

Location Differentiation

A strategy businesses use to establish a competitive advantage based on the physical location of a service or product offering.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition.

Mandarin Oranges

A small citrus fruit with a sweet flavor and easy-to-peel skin, often eaten fresh or used in salads.