Answer;
Monopoly
Water supplier in your town is an example of a monopoly
Explanation;
- Monopoly arises when there is one firm, which produces a good or service that has no close substitutes and in which the firm is protected by a barrier preventing the entry of new firms.
- Government may create natural monopolies such as electricity compnay, water company, etc. with an intention of getting economies of scale that benefit consumers by keeping costs down