ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Folgers Coffee Company controls the cultivation of coffee, the warehouse storage, the transportation, and distribution of their coffee. This would be an example of:
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Horizontal Integration
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Vertical Integration
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -A monopoly forms when barriers prevent firms from entering a market that has a single supplier. While a perfectly competitive market has many buyers and sellers, monopoly markets have only one seller, but any number of buyers. In fact, barriers to entry are the principal condition that allows monopolies to exist.
Detailed explanation-2: -differentiation to attract consumers is the oligopoly.
There is 1 question to complete.