C.R. Evans, a transportation corporation, has just completed the development of a new subway system in Melbourne. Currently there are plenty of seats on the subway, and it is never crowded. Its capacity well exceeds the needs of the city. After just a few years of operation, the shareholders of C.R. Evans common stock are experiencing incredible rates of return on their investment, due to the profitability of the corporation.
-According to the information provided,C.R. Evans may continue to be a monopolist in the subway transportation industry only if:

Question

Quizplus · Accepted Answer

C.R. Evans may continue to be a monopolist if there are no new entrants to the market. If another company were to enter the market, it would decrease C.R. Evans' market power and potentially decrease their profitability. The other options, such as a decrease in demand or overcrowding, do not necessarily guarantee C.R. Evans' continued monopoly status.

CR Evans, a Transportation Corporation, Has Just Completed the Development