In exchange for a share in the revenues earned on campus,State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus.Prior to the deal,three soft drink companies sold beverages on campus;now no other soft drink company is allowed to sell its products on campus or at university events.
Refer to the information above.CheapFizz now has market power due to:
A) the economies of scale gained by having more sales on campus.
B) the grant of a patent.
C) the grant of an exclusive license to sell.
D) network economies caused by all students consuming their product.
Correct Answer:
Verified
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