A single water utility serves a city because building a second system of pipes would cost more than a rival could recover. What barrier keeps rivals out?

A pharmaceutical company alone can make a new drug because it holds the exclusive legal right to its formula. Which barrier to entry protects the firm?

Only one ferry company serves a small island far offshore, because rough seas and the long trip make a second service unprofitable. What barrier to entry is most important?

A state grants one company the sole right to collect trash in a city for ten years. What prevents a competing trash collector from entering?

A railroad already owns the tracks connecting two towns. Why can it carry each rider more cheaply than a new rival that must first build its own line?

A firm is the only seller of a game console because rivals are not allowed to copy its operating system and hardware designs. What barrier most limits entry?

A local cable company is the only provider because the city requires any provider to obtain a permit and has issued only one permit. What is the barrier to entry?

A monopolist faces no close substitutes, while firms in perfect competition sell identical products. Compared with the competitive outcome, a profit-seeking monopolist generally chooses to

After gaining exclusive control of a medicine, a firm reduces production from the competitive quantity. If demand remains the same, what is the likely effect on its price?

Why does a monopoly not behave as a price taker?

A competitive market produces 10,000 units at $8 each. After one firm becomes the only seller and demand is unchanged, which outcome is most consistent with monopoly behavior?

A monopolist chooses its profit-maximizing quantity where marginal revenue equals marginal cost, then uses demand to set price. How does that price usually compare with marginal cost?

A sole supplier considers lowering its price enough to sell more units. Why might it avoid doing so?

If barriers to entry disappear in a monopoly market, new firms are likely to enter when profits are high. What pressure does entry create?

One electric company can serve all customers at lower cost than two separate electric companies because of its extensive grid. What type of monopoly is this?

A ranch supply store is the only seller within 90 miles because mountains and sparse population make another store unprofitable. How should this monopoly be classified?

An inventor receives exclusive rights to produce a new battery design for a limited period. What type of monopoly can result?

A city ordinance authorizes only one firm to operate parking meters on public streets. Which type of monopoly does the ordinance create?

A gas pipeline network has such high fixed costs that one provider can deliver gas more cheaply than several competing networks. This is best classified as a

A single airport shop sells travel adapters after security because no other seller can operate in that secured area. What type of monopoly best describes the shop's advantage?

A town's only internet provider raises its monthly price, and residents have no close substitute. What can the provider do because of this market power?

A monopoly raises the price of a necessary service, and customers cannot switch suppliers. What is the most likely immediate effect on buyers?

A sole seller charges $30 for a product that would cost $20 in a competitive market with the same costs and demand. Which statement describes the buyers' situation?

A monopolist has reduced output to keep price high. Making one more unit would cost it $10. A customer who values the product at $18 cannot buy it because the price is $25. What does this show?

A single company sells a unique replacement part, and buyers have no alternative supplier. If the company raises price, why may many buyers still purchase it?