Which of the following firms maintains a monopoly or cartel by controlling essential inputs thus creating a barrier to entry?
A)DeBeers in diamonds
B)Nike in shoes
C)Pepsi in beverages
D)Subway in sandwich fast food
E)Levis in denim jeans

Question

Quizplus · Accepted Answer

DeBeers controls the majority of the world's diamond supply, creating a barrier to entry for competitors. This allows them to maintain a monopoly on the diamond industry.

Which of the Following Firms Maintains a Monopoly or Cartel