Asked by Lindsey Norberg on Jun 23, 2024
Verified
Which of the following is false?
A) For a monopolist there are no close substitutes for its product.
B) Large corporations rarely use its vast political power for fear of facing anti-trust lawsuits.
C) To be big is not necessarily to behave badly.
D) A business that would normally be considered competitive can have a local monopoly because its nearest competitors are many miles away.
Close Substitutes
Close substitutes are products or services that can easily replace each other in the eyes of consumers due to similarities in function or characteristics.
Anti-Trust Lawsuits
Anti-trust lawsuits are legal actions undertaken to address and prevent business practices that reduce or restrict competition in the market.
Local Monopoly
A situation where a single company or entity exclusively supplies a product or service in a specific geographic area, facing no competition.
- Comprehend the mechanisms of monopoly, including strategies for establishing and preserving market authority.
Verified Answer
OA
Osama AhmedJun 26, 2024
Final Answer :
B
Explanation :
Large corporations frequently engage in lobbying and use their political power to influence laws and regulations in their favor. The fear of facing antitrust lawsuits may deter some companies, but it is not a common reason for them to refrain from using their political power.
Learning Objectives
- Comprehend the mechanisms of monopoly, including strategies for establishing and preserving market authority.