Which of the following scenarios best represents a monopoly situation?
A)Bill and Tom work separately from one another but both sell a very rare form of the same diamond; they are the only sellers of this type of diamond in town
B)Bill owns the only grocery store in a small community that lies 200 miles from the nearest city
C)Tom owns a fishing tackle shop in Miami, Florida, in which he sells all the top-of-the-line fishing equipment
D)none of the above adequately represent a monopoly

Question

Quizplus · Accepted Answer

A monopoly situation is one in which there is only one seller in the market, giving them complete control over the price of the goods or services they provide. In this scenario, Bill is the only seller of groceries in the small community, making him a monopoly. Option A has two sellers, while option C does not have a monopoly as there may be other fishing equipment stores in Miami.

Which of the Following Scenarios Best Represents a Monopoly Situation