Which of following is the best example of a monopoly if we use a broader definition of monopoly?
A)Spuds McKenzie, a wealthy potato farmer in Idaho
B)Cheap Gas, one of two gasoline stations in a large rural community
C)Santos Tacos, the only taqueria in the small town of Santosville
D)Zippie Rentals, a car rental service in Boston

Question

Quizplus · Accepted Answer

A broader definition of monopoly includes any situation in which a single seller or producer dominates a market, regardless of whether it is illegal or harmful to competition. Santos Tacos fits this definition as the only taqueria in a small town, giving it a dominant position in the local market. Spuds McKenzie, Cheap Gas, and Zippie Rentals all have some degree of competition, and therefore do not qualify as true monopolies under a broader definition.

Which of Following Is the Best Example of a Monopoly