Question

What is Geographic Monopoly?

Answer 1

Answer:

The first option... A monopoly which controls any market of goods

A geographic monopoly occurs when a certain company holds the entire market for a certain service/product. This happens when the market is so limited that it doesn't make sense for anyone besides a single seller to enter the market (any additional people or companies wouldn't make much of a profit). An example of this could be anything from a shop in a small town, to cable companies and phone companies.

Explanation:

A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity. This contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly and duopoly which consists of a few sellers dominating a market. Monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit.