In Exchange for a Share in the Revenues Earned on Campus,State

question 56

Multiple Choice

In exchange for a share in the revenues earned on campus,State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus.Prior to the deal,three soft drink companies sold beverages on campus;now no other soft drink company is allowed to sell its products on campus or at university events.
Refer to the information above.CheapFizz now has market power due to:

• A)the economies of scale gained by having more sales on campus.
• B)the grant of a patent.
• C)the grant of an exclusive license to sell.
• D)network economies caused by all students consuming their product.

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