Consider a transportation corporation named C.R. Evans, which has just completed the development of a new subway system in a medium-sized city in Western Canada. Currently, there are plenty of seats on the subway, and it is never crowded. Its capacity far exceeds the needs of the city. After just a few years of operation, the shareholders of C.R. Evans experienced incredible rates of return on their investment due to the profitability of the corporation. How can C.R. Evans continue to be a monopolist in the subway transportation industry?

 

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Expand into neighboring cities CR Evans could explore opportunities to expand their subway system in... View the full answer