Which of the following industries most closely approximates a monopoly?
A)the insurance industry
B)the restaurant industry
C)agriculture
D)fishing
E)a public utility

Question

Quizplus · Accepted Answer

A public utility, such as a company that provides water or electricity service, is the most likely industry to approximate a monopoly because there are usually limited options for consumers to choose from in a given geographic area. The company may have exclusive rights to provide service in that area or have significant barriers to entry for new competitors. This can lead to the company having significant pricing power and control over the market.

Which of the Following Industries Most Closely Approximates a Monopoly