A monopoly will arise if
A) two out of three of a town's pizzerias go out of business and only one new pizzeria opens.
B) the town council passes a law granting Nick's Pizza the exclusive right to operate in that town.
C) Papa Joe's Pizza becomes the largest pizza producer in town and Nick's Pizza stays small in size.
D) several big pizza chains force several small pizzerias out of business.
E) people decide they like pizza more than before so some pizzeria's gain new customers.

Question

Quizplus · Accepted Answer

A monopoly will arise if one company has exclusive control over the market. Option A, C, D and E do not guarantee exclusive control over the market. However, option B grants exclusive rights to Nick's Pizza, making it the only pizzeria in town, thereby creating a monopoly.

A Monopoly Will Arise If