Economics Principles For A Changing World
Economics Principles For A Changing World
4th Edition
ISBN: 9781464186660
Author: CHIANG, Eric P.
Publisher: Worth Publishers,
Question
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Chapter 9, Problem 1QP
To determine

Identify the monopolies.

Expert Solution & Answer
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Explanation of Solution

The two firms, M and S have some of the features of a monopoly market structure, like, both have a considerable market power in their own respective areas. However, in a strict sense, both the firms are not considered as a pure monopoly. This is because the firm M and S are food companies, and they are not the only firm situated in their respective areas. There are a number of competitors a short drive away. Hence, the firms, M and S are not pure monopolies. 

Economics Concept Introduction

Monopoly: Monopoly is a market structure, which is characterized by a single seller selling a single commodity without close substitutes. They have control over price and are known as price makers.

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