You live in a small town and there is only one Indian restaurant in the town. The next nearest Indian restaurant is 30 kilometres away. Is this Indian restaurant a monopoly?
A) no, because there are close substitutes for the Indian restaurant such as other restaurants in town and Indian food sold in the local supermarket
B) no, because there are Indian restaurants in other towns
C) yes, because it is the only Indian restaurant in the town
D) yes, because the demand curve facing the Indian restaurant is downward sloping
Correct Answer:
Verified
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