Which scenario best represents a monopoly situation
A)Bill and Tom work separately from one another but both sell a very rare form of the same diamond.They are the only sellers of this type of diamond in town.
B)Tim owns a fishing tackle shop in Vancouver, in which he sells the top-of-the-line fishing equipment.
C)Bob owns the only grocery store in a small community that lies 300 kilometres from the nearest city.
D)Robert is the only seller of a specific cola soft drink, but Erin sells one that is a close substitute.

Question

Quizplus · Accepted Answer

A monopoly situation is when there is only one seller in the market for a specific product or service. In scenario C, Bob owns the only grocery store in a small community, making him the only seller in that specific market. This gives him significant market power and control over prices, which is a key characteristic of a monopoly.

Which Scenario Best Represents a Monopoly Situation