Asked by Samantha Alvarez on Jun 08, 2024
Verified
Firms that had virtual monopolies,that is control over at least 80 percent of industry production,because of control over an essential resource include all of the following except
A) the DeBeers Diamond Company.
B) the International Nickel Company.
C) the Ford Motor Company.
D) the Standard Oil Company.
Virtual Monopolies
Situations where a single company or entity dominates an entire market or industry, even though technically there may be minor competitors.
Essential Resource
A fundamental input required for the production of goods and services, often characterized by its scarcity and necessity.
International Nickel Company
A multinational corporation that was historically involved in nickel mining and smelting; now part of Vale S.A.
- Familiarize with the structure of monopolies, including how they achieve and hold onto their position of market power.
Verified Answer
AA
Andrew AlemanJun 10, 2024
Final Answer :
C
Explanation :
While Ford Motor Company was a dominant force in the automobile industry, it did not have control over an essential resource that gave it a virtual monopoly. The other three choices (DeBeers Diamond Company, International Nickel Company, and Standard Oil Company) all had such control, making them virtual monopolies.
Learning Objectives
- Familiarize with the structure of monopolies, including how they achieve and hold onto their position of market power.