In Exchange for a Share of the Revenues Earned on Campus

Multiple Choice

In exchange for a share of the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus. CheapFizz now has market power due to:

A) economies of scale in the production of soda.
B) its exclusive ownership of an input.
C) its exclusive license to sell soda.
D) network economies in the consumption of soda.