contestada

Suppose Kim owns the only restaurant in town that serves pizza. Other restaurants serve hamburgers​, tacos​, and fried chicken. Suppose that in the long​ run, Kim​'s restaurant continues to be the only one in town selling pizza. If Kim is earning economic profits​, ​then, under the broad​ definition, is Kim​'s restaurant a​ monopoly?

Respuesta :

fatimakincsem

Yes, The given statement is True.

If Kim is earning economic profits, then under the broad definition, Kim's Restaurant is a Monopoly.

Explanation:

Monopoly is one the many market structures. In this market structure, there is only one Seller of the product. This product is unique in a sense that there is no other manufacturer of that product. There is no competition faced by the seller. The seller is the only one who sells the unique product.

There are no close substitutes of the product sold by the seller in Monopoly.

So when Kim's restaurant is the only restaurant in town who sells pizza, and there is no other restaurant who sells it, it means that Kim's restaurant has a monopoly in the town. There is no competition faced by his restaurant as there is no close substitute of pizza in the town.

Learn more about Market Structure at:

https://brainly.com/question/6909479

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