WePro has created a monopoly in the Nigindia sugar market by acquiring its competitors. Which of the following might keep it from fully leveraging its market power?
A)Cannibalization
B)Increased demand for coffee
C)Splenda
D)Barriers to entry
E)Switching costs

Question

Quizplus · Accepted Answer

Splenda is a substitute good for sugar. If the cost of sugar is too high, Nigindians might switch to the artificial sweetener.
Key Takeaway: Always consider potential substitutes when assessing a market structure. For instance, riding a train or driving is a substitute for flying.

WePro Has Created a Monopoly in the Nigindia Sugar Market