In Walnut Creek, California, there are three very popular supermarkets: Safeway, Whole Foods, and Lunardi's. While Safeway remains open twenty-four hours a day, Whole Foods and Lunardi's close at 9 pm. Which of the following statements is true?
A) Safeway can ignore the pricing decisions of the other two supermarkets.
B) Safeway is a monopoly all day because it produces a service that has no close substitutes.
C) Safeway has a monopoly at midnight but not during the day.
D) Safeway probably has a higher markup to compensate for its higher cost of production.
C
Economics
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The use of abstraction in economic analysis is one of its primary weaknesses.
Answer the following statement true (T) or false (F)
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