Many years ago the Aluminum Company of America owned almost

Many years ago the Aluminum Company of America owned almost all sources of the special ore (bauxite) needed to produce aluminum. This is an example of market power arising from:

control of a key input.

switching costs.

network effects.

extreme economies of scale.

Solution

Network effects

This is also known as cartel formation in which all the companies tries to follow one single rate and rule the market