Why is Thomas considered a monopolist in the production of your textbook?

Multiple choice question for Monopoly. Select an option, then review the explanation below.

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Thomas holds a legal exclusive license to manufacture this textbook.Thomas controls an essential resource required for textbook production.Thomas operates as a natural monopoly in this market.Thomas is a very large corporation.

Explanation

Thomas is a monopolist because he possesses a legally granted exclusive right to produce this textbook, preventing others from manufacturing it.

Practice related questions from the same subject.

1.Which option best describes the concept of price discrimination?
2.In contrast to a perfectly competitive market, what is a monopolist more inclined to do?
3.In a pure monopoly market, how does the price compare to the marginal revenue?
4.What action should a monopolist take when marginal revenue is greater than marginal cost?
5.What is the likely impact on production costs if a natural monopoly is divided into several smaller companies by regulators?

Why is Thomas considered a monopolist in the production of your textbook?

Explanation

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