A restricted-input monopoly is most likely to result if a single firm:
A) is the only seller in a small town or community.
B) is investor owned, but granted the exclusive right by the government to operate in a market.
C) experiences long-run increasing economies of scale over a wide range of output.
D) has gained control over a strategic factor of production.

Question

Quizplus · Accepted Answer

A restricted-input monopoly occurs when a firm gains control over a strategic factor of production, such as owning a patent, exclusive access to a key resource, or proprietary technology. This allows the firm to limit the entry of competitors and maintain their market power. The other options may lead to a degree of market power, but not necessarily the level of control that would result in a restricted-input monopoly.

A Restricted-Input Monopoly Is Most Likely to Result If a Single