Final answer:
An ice cream vendor on the turnpike could hold a monopoly through a government license, control over inputs, or economies of scale that lead to a natural monopoly. These barriers to entry prevent competition and allow the vendor to be the sole provider.
Step-by-step explanation:
How would an ice cream vendor on the turnpike have a monopoly?
An ice cream vendor on the turnpike could establish a monopoly through several means. If the vendor holds a government license that grants exclusive rights to sell ice cream on the turnpike, this legal restriction can prevent other vendors from entering the market. The control over inputs, such as having the exclusive right to a unique ice cream recipe or proprietary technology for ice cream production, can also create a monopoly if no other business can offer a similar product. Lastly, a situation may occur where there are economies of scale in the operation of the ice cream vending business. This would mean that the vendor can produce at a lower cost per unit due to high levels of production, creating a cost advantage that is difficult for new competitors to match. A natural monopoly could form if the market on the turnpike cannot support multiple vendors due to limited demand, leading to one vendor being the most efficient provider.