-Ralph's Ski Shop is a local monopoly in a regional market. This type of situation can result from all of the following except:
A) small population relative to output needed for scale economies
B) patent protection
C) control of local zoning or limited operation permits
D) long distance to alternative ski shops
E) multiple products

Question

-Ralph's Ski Shop is a local monopoly in a regional market. This type of situation can result from all of the following except:
A) small population relative to output needed for scale economies 
B) patent protection 
C) control of local zoning or limited operation permits 
D) long distance to alternative ski shops 
E) multiple products

Quizplus · Accepted Answer

Multiple products do not inherently prevent competition or create a monopoly. A local monopoly typically arises from unique circumstances that limit competition, such as geographic isolation, legal protections, or control over essential resources, not from offering a variety of products.

-Ralph's Ski Shop Is a Local Monopoly in a Regional