Question

1. antonio owns a pizza shop. people come far and wide for his famous pizza, so he starts to expand and does so by putting other pizza shops out of business. eventually, he owns all the pizza shops in his city and so antonio raises the price of his food. which best explains why antonio can raise his prices?

a. there are more competitors in his city and therefore he needs to raise his prices to make a profit.

b. antonio uses higher quality ingredients in his pizzas which increases the value of his pizzas over any of his competitors

c. antonio has a monopoly on pizza in his city, so he does not have any competitors to drive prices down.

d. once antonio owns more than one shop, he must become a corporation

Explanation:

• Option A is incorrect because Antonio put other pizza shops out of business, so competition decreased, not increased.
• Option B: The problem doesn't mention a change in ingredient quality; it focuses on eliminating competition.
• Option C: When Antonio becomes the only pizza shop (monopoly), he has no competitors to force price reductions, so he can raise prices.
• Option D: Owning multiple shops doesn't require becoming a corporation, and this is irrelevant to price - raising ability.

Answer:

C. Antonio has a monopoly on pizza in his city, so he does not have any competitors to drive prices down.