The Case in Point on the Ambassador Bridge suggests that the source of monopoly power in this case is:
A) location.
B) substantial sunk costs.
C) government licensing
D) both A and B above.

Question

Quizplus · Accepted Answer

The location of the Ambassador Bridge plays a significant role in its monopoly power, as it is the only bridge connecting Detroit and Windsor, Ontario. Additionally, substantial sunk costs such as the construction and maintenance of the bridge provide a barrier to entry for potential competitors, further contributing to the Ambassador Bridge's monopoly position.

The Case in Point on the Ambassador Bridge Suggests That