Many years ago, the Aluminum Company of America owned almost all sources of the ore (bauxite) needed to produce aluminum. This is an example of market power arising from:

Question

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The Aluminum Company of America's control over almost all sources of bauxite, the ore needed to produce aluminum, is a clear example of market power arising from control of a key input. By owning the sources of the essential raw material, the company could influence production, pricing, and entry of competitors into the aluminum market.

Many Years Ago, the Aluminum Company of America Owned Almost