96.9k views
4 votes
The water supplier in your town is an example of​ _______.

User Sigabrt
by
6.9k points

1 Answer

3 votes

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
User Ckaserer
by
7.2k points