In Hamilton, Ontario there are three very popular supermarkets: Superstore, Fortinos, and Sobeys.While Sobey's remains open twenty-four hours a day, Superstore and Fortinos close at 11 pm.Which of the following statements is true?

Question

Quizplus · Accepted Answer

Sobeys has a monopoly at midnight because it remains open 24 hours, while the other two supermarkets close at 11 pm. However, during the day, customers have other options at Superstore and Fortinos, meaning Sobeys does not have a complete monopoly. Options A and C are incorrect because Sobeys does not produce a service with no close substitutes, and it cannot ignore the pricing decisions of its competitors. Option D is also incorrect because there is no information in the question to suggest that one supermarket has a higher cost of production than the others.

In Hamilton, Ontario There Are Three Very Popular Supermarkets: Superstore