Question: Monopolies and New Entrants
Snack food vendors and beer distributors earn some monopoly profits in their local markets but see them slowly erode from various new substitutes. When California voted on legalizing marijuana, which side would you think that California beer distributors were on? What about snack food vendors? Why? Make sure you think about and define complements and substitutes as you consider these questions.
As you think about this question consider what do you really know. Think about the difference between common knowledge, mostly mere rumor. Consider what is mere a conjecture as to complements and substitutes. What is mere correlation versus causation? Finally when you are doing research, are you using an objective source or an advocacy source?