A store's location may impact which of the following in a competitive market?

• A. The legal definition of a monopoly
• B. The global supply of raw materials
• C. The store's access to customers and its overall demand
• D. The national interest rate set by the central bank

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the context of the problem, which is about how a store's location affects market outcomes in a competitive market.
2. Step 2: Recognize that the legal definition of a monopoly is based on market structure and market power, which is not directly influenced by a single store's location.
3. Step 3: Consider that the global supply of raw materials is determined by worldwide production and trade, and is unrelated to the location of an individual store.
4. Step 4: Analyze how a store's location affects its access to customers, which directly influences the store's demand curve. A better location typically means higher customer traffic and greater demand.
5. Step 5: Note that the national interest rate set by the central bank is a macroeconomic policy variable and is not affected by the location of a single store.