
Ocean Spray is considered to be an oligopoly firm because, until the 1990s, it faced little competition in the market for fresh and frozen cranberries.Why?
A) Ocean Spray had a patent on the production of cranberries that gave the company the exclusive right to market its product for 20 years. The 20-year period ended in the 1990s.
B) Until the 1990s, Ocean Spray controlled almost the entire supply of cranberries.
C) Ocean Spray was able to achieve significant economies of scale in the production of cranberries. Beginning in the 1990s, other firms finally achieved economies of scale as well, but Ocean Spray still controls about 80 percent of the cranberry market.
D) The federal government imposed a high tariff on cranberry imports. During the 1990s the tariff was eliminated, but Ocean Spray still controls about 80 percent of the cranberry market.
Correct Answer:
Verified
Q39: The fraction of an industry's sales that
Q40: Which of the following is not necessarily
Q41: Which of the following statements regarding concentration
Q42: A patent is an example of
A)how ownership
Q43: Economies of scale will create a barrier
Q45: Hewlett-Packard will not raise the prices of
Q46: If economies of scale are relatively important
Q47: Which of the following is not an
Q48: According to the textbook, of all barriers
Q49: For many years the Aluminum Company of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents