A location-based monopoly is most likely to result if a single firm:
A) is the only seller in a small town or community.
B) is investor owned, but granted the exclusive right by the government to operate in a market.
C) experiences long-run increasing economies of scale over a wide range of output.
D) has gained control over a strategic input of an important production process.

Question

Quizplus · Accepted Answer

A location-based monopoly occurs when a single firm is the only seller in a specific geographic market, such as a small town or community. This firm has sole control over that market, which can lead to higher prices, lower quality products or services, and reduced consumer choice.

A Location-Based Monopoly Is Most Likely to Result If a Single