In which of the seven cases might monopoly arise?

Use the following list, which gives some information about seven firms, to answer Problems 10 and 11.

■ Coca-Cola cuts its price below that of Pepsi-
Cola in an attempt to increase its market share.

■ A single firm, protected by a barrier to entry, produces a personal service that has no close substitutes.

■ A barrier to entry exists, but the good has some close substitutes.

■ A firm offers discounts to students and seniors.

■ A firm can sell any quantity it chooses at the going price.

■ The government issues Nike an exclusive license to produce golf balls.

■ A firm experiences economies of scale even when it produces the quantity that meets the entire market demand.