A coal producer has a monopoly on coal.A different monopoly controls the railroad that takes the coal to market.Each monopolist chooses prices to maximize its profits.If the coal monopolist buys the railroad, then it will increase its profits by raising the market price of coal.

Monopolist

An individual or company that holds a monopoly in a particular market, controlling the supply of a product or service and potentially its price.

Railroad

A mode of land transportation involving trains running on tracks to transport passengers or goods across various distances.

Market Price

The price at which a product or service is bought and sold in the competitive marketplace.