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Consider the market for aluminum. The Aluminum Company of America (Alcoa) used to control all U. S. sources of bauxite, a key ingredient in the production of aluminum. Given that Alcoa did not sell bauxite to any other companies, Alcoa was a monopolist in the U. S. aluminum industry from the late-nineteenth century until the 1940s.
1. Which of the following best explains the barriers to entry that exist in this scenario?a. Increasing returns to scaleb. Legal barriersc. Exclusive ownership of a necessary resource
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Consider the market for aluminum. The Aluminum Company of America (Alcoa) used to control all U. S....
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