You Live in a Small Town Where There Is Only

Multiple Choice

You live in a small town where there is only one Indian restaurant. The next Indian restaurant is 30 miles away. Is the Indian restaurant in your town a monopoly?

A) No, because there are Indian restaurants in other towns.
B) Yes, because the demand curve facing the Indian restaurant is downward- sloping.
C) No, because there are close substitutes for the Indian restaurant such as other restaurants in town and Indian food sold in the local supermarket.
D) Yes, because it is the only Indian restaurant in the town.