The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7

-Before World War II, Alcoa controlled the supply of bauxite in the United States. Because bauxite is a scarce resource that is vital to the production of aluminum:
A)Alcoa was bound to charge a nominal price in the U.S. aluminum market.
B)Alcoa had a monopoly in the U.S. aluminum market.
C)the U.S. aluminum market was highly competitive.
D)Alcoa can be said to have operated in a monopolistically competitive market.
E)Alcoa can be said to have operated in an oligopolistic market structure.

Question

The figure given below shows the aggregate demand and supply curves of a perfectly competitive market.Figure 10.7
 
-Before World War II, Alcoa controlled the supply of bauxite in the United States. Because bauxite is a scarce resource that is vital to the production of aluminum:
A)Alcoa was bound to charge a nominal price in the U.S. aluminum market. 
B)Alcoa had a monopoly in the U.S. aluminum market. 
C)the U.S. aluminum market was highly competitive. 
D)Alcoa can be said to have operated in a monopolistically competitive market. 
E)Alcoa can be said to have operated in an oligopolistic market structure.

Quizplus · Accepted Answer

If Alcoa controlled the supply of bauxite in the United States, it had a monopoly in the U.S. aluminum market, which means it could set the price of aluminum higher than it would be in a competitive market.

The Figure Given Below Shows the Aggregate Demand and Supply