Some people think that businesses create monopolies by destroying their competition, and there is certainly some truth to that. But as we learned from Obi-Wan Kenobi, “You will find that many of the truths we cling to depend greatly on our own point of view.” For instance, some people (Convenience Shoppers) love shopping at one particular store and will switch stores only when a product is outrageously expensive, while other people (Bargain Shoppers) will gladly spend hours looking through newspaper advertisements searching for the best deal.
a. When both kinds of people, the Convenience Shoppers and the Bargain Shoppers, are shopping at the same Walmart, who is more likely to stick to their prearranged shopping list, and who is more likely to splurge on a little something?
b. Which group does Walmart have monopoly power over? Which group does Walmart have no monopoly power over?
c. Does this mean that the same shop can simultaneously be a “monopolist” to some customers and a “competitive firm” to other customers? Why or why not?
d. Does this mean that Darth Vader really did kill Anakin Skywalker?