The great basebail player Ty Cobb was known for being very thrifty, Near the end
ID: 1166148 • Letter: T
Question
The great basebail player Ty Cobb was known for being very thrifty, Near the end of his ife he was interviewed by a reporter who was surprised to find that Colbb used candes, rather than electrioity. to light his home. From Ty Cobb's point of view, was the local electric company a monopoly? For Cobb, the local electric company O A. was not a monopoly because candles were a good substitute for electriclity OB. was not a monopoly because it earned no economic proft O C. was a monopoly because it charged high prices for electricity. O D. was a monopoly because it was the only source of electricity OE. was a monopoly because n produced only ono good.Explanation / Answer
Correct ans is a)
Was not a monopoly because candles were a good substitute for electricity
It is so because a monopoly product have no close substitute but for Cobb there is a close substitute for electricity is present that is candels. So electricity company a not a monopoly.
Other options are incorrect as
b) it is incorrect because the profit of monopoly is not defining here and also it is not a characteristic of a monopoly.
C) is incorrect because if a firm or company charge high price it does not mean it is a monopoly, it could be oligopoly or monopolistic competitive firm.
D) is incorrect because for Cobb there is also another source is available that is candle.
E) Is incorrect because it is not a sufficient conditions that the company only produce one product so it is a monopoly.
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