A narrow definition of monopoly is that firm has monopoly

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A narrow definition of monopoly is that a firm has a monopoly if it can ignore the actions of all other firms. Under a broad definition, a firm has a monopoly if no other firms are selling a substitute close enough that the firm’s economic profits are competed away in the long run. If you were to own the only furniture store in a small town, would you be considered to have a monopoly?

Reference no: EM131236987

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