In Walnut Creek, California, There Are Three Very Popular Supermarkets

question 87

Multiple Choice

In Walnut Creek, California, there are three very popular supermarkets: Safeway, Whole Foods, and Lunardi's.While Safeway remains open twenty-four hours a day, Whole Foods and Lunardi's close at 9 pm.Which of the following statements is true?

• A)Safeway is a monopoly all day because it produces a service that has no close substitutes.
• B)Safeway has a monopoly at midnight but not during the day.
• C)Safeway can ignore the pricing decisions of the other two supermarkets.
• D)Safeway probably has a higher markup to compensate for its higher cost of production.