Which of the following is LEAST likely to operate as a monopoly?

• A. A pharmaceutical company with a drug patent
• B. The sole owner of an occupational license
• C. A store in a large shopping mall
• D. The holder of a public utility franchise

Answer: (C)

Verified step by step guidance

1. Understand the definition of a monopoly: A monopoly exists when a single firm is the sole provider of a product or service in a market, with no close substitutes, and significant barriers to entry for other firms.
2. Analyze the characteristics of each option: A pharmaceutical company with a drug patent has exclusive rights to produce and sell a specific drug, creating a barrier to entry for competitors.
3. Consider the sole owner of an occupational license: This individual has exclusive rights to operate in a specific profession or trade, potentially limiting competition in that field.
4. Evaluate the holder of a public utility franchise: This entity is often granted exclusive rights by the government to provide essential services like water or electricity, typically operating as a monopoly in that region.
5. Assess the store in a large shopping mall: This store is one of many in a competitive retail environment, with numerous substitutes available, making it least likely to operate as a monopoly.