Joe Santos owns the only pizza parlor in a small town that is also home to a McDonald's, a Taco Bell, and a Kentucky Fried Chicken.Using a broad definition of a monopoly, Joe has a monopoly if the menu items sold at the other restaurants are not considered close substitutes for the food sold at the pizza parlor.

Question

Quizplus · Accepted Answer

A broad definition of a monopoly focuses on the absence of close substitutes in the market. In this case, if the menu items sold at the other restaurants (McDonald's, Taco Bell, and Kentucky Fried Chicken) are not considered close substitutes for the food sold at Joe's pizza parlor, he would have a monopoly in the small town.

Joe Santos Owns the Only Pizza Parlor in a Small