A flour mill holding exclusive contracts to 95% of the wheat in a large geographic area may operate as a flour producing monopoly locally because
A) the mill has a very inelastic supply curve.
B) the mill is a natural monopoly.
C) the mill controls a key input.
D) the government will declare it a monopoly.
C
You might also like to view...
The two fundamental causes of unemployment at full employment are
A) demographic change and decreases in the demand for labor. B) job search and job rationing. C) seasonal jobs and technological change. D) foreign competition and financial bankruptcies. E) decreases in labor productivity and more generous retirement benefits.
Which combination of monetary and fiscal policies might policymakers elect to ward off a potential recession?
A) Fed sale of bonds combined with tax rate increases B) Fed sale of bonds combined with tax rate decreases C) Fed purchase of bonds combined with tax rate increases D) Fed purchase of bonds combined with tax rate decreases