Which scenario is an example of a monopoly?

Question

Group of answer choices

A dry cleaner specializes in envoronmentally friendly cleaning methods.

A local water company is the sole provider for water in a small town.

A farmer produces green beans for sale at a farmer's market.

A small number of cereal companies produce most of the cereal on the market.

Answer 1

The scenario that represents a monopoly is:

A local water company is the sole provider for water in a small town.

A monopoly occurs when a single company or entity is the only provider of a particular good or service, which is the case with the local water company in this scenario.