AACSB Analytic Skills Special Feature None 18 In Walnut Creek California there

Aacsb analytic skills special feature none 18 in

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LO3: Use sequential games to analyze business strategies. AACSB: Analytic Skills Special Feature: None 18) 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 is a monopoly all day because it produces a service that has no close substitutes. B) Safeway has a monopoly at midnight but not during the day. C) Safeway can ignore the pricing decisions of the other two supermarkets. D) Safeway probably has a higher markup to compensate for its higher cost of production. Answer: B Comment: Recurring Diff: 2 Page Ref: 462/462 Topic: Characteristics of Monopoly Objective: LO1: Define monopoly. AACSB: Reflective Thinking Special Feature: None 19) A monopoly differs from monopolistic competition in that
13 C Comment: Recurring Diff: 2 Page Ref: 462/462 Topic: Characteristics of Monopoly Objective: LO1: Define monopoly. AACSB: Reflective Thinking Special Feature: None 20) A patent or copyright is a barrier to entry based on C Comment: Recurring Diff: 1 Page Ref: 463-465/463-465 Topic: Patents and Copyrights Objective: LO2: Explain the four main reasons monopolies arise. AACSB: Reflective Thinking Special Feature: None 21) For a natural monopoly to exist, C Comment: Recurring Diff: 2 Page Ref: 467-468/467-468 Topic: Natural Monopoly
14 Objective: LO2: Explain the four main reasons monopolies arise. AACSB: Reflective Thinking Special Feature: None

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