Which of the following industries is a real-world example of monopolies?

Commercial airline

Agricultural vendor

Fitness center in a large city

Local electricity company with no competitors

1 answer

The real-world example of a monopoly from the options provided is the local electricity company with no competitors. In many regions, utilities such as electricity providers are single providers in their area, meaning they hold a monopoly over that specific market. This can occur due to high infrastructure costs, regulatory issues, or other barriers to entry that prevent competition.

The other options typically have multiple competitors:

  • Commercial airlines usually compete against one another on various routes.
  • Agricultural vendors often have many competitors within the market.
  • Fitness centers in a large city generally face competition from other gyms and fitness facilities.