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Development Economics
» Productivity of firms »
Local monopoly power
» Local monopoly power - Practice Questions
Local monopoly power - Practice Questions
1. Businesses and small firms in remote locations tend to have little competition. This allows for a local monopoly. Which of the following is likely to occur as a result?
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prices of goods in these locations will be higher than in major cities where competition is stronger
prices are lower as the people of these villages are too poor to pay higher prices
firms in these villages are more likely to expand than firms in larger cities
