(a)
Explain why the given items are considered as monopolist in the market.
(a)
Explanation of Solution
The local water service is a single firm which delivers unique product because there is no substitute for water. Thus, the local water service is a monopolist in the market.
Monopolist: A monopolist is an individual or a company that controls the market for a particular good or service.
(b)
Explain why the given items are considered as monopolist.
(b)
Explanation of Solution
The newly invested cancer drug with patent protection is a
Monopolist: A monopolist is an individual or a company that controls the market for a particular good or service.
(c)
Explain why the given items are considered as monopolist
(c)
Explanation of Solution
U.S postal service is a definitive example of pure monopoly. Thus, it is a monopolist in the market.
Monopolist: A monopolist is an individual or a company that controls the market for a particular good or service.
Want to see more full solutions like this?
Chapter 9 Solutions
Micro Economics For Today
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education