Final answer:
Examples of geographic monopolies include instances where there is only one provider of a certain service in an area, like a single restaurant, railroad, or airline in a small town.
Step-by-step explanation:
A geographic monopoly exists when a company or entity is the only provider of a specific good or service in a particular geographic area, with no close substitutes or competitors within a reasonable distance.
Examples of geographic monopolies include a small town with one restaurant, a small town with one railroad, or a small town with one airline. These monopolies may occur naturally due to the high cost of entry or because demand in the area is insufficient to support multiple providers. It's also possible that transportation costs or regulatory barriers limit competition.
A geographic monopoly can arise in local markets where factors like economies of scale or control over physical resources, such as ALCOA's control of bauxite for aluminum production, create an environment where competition is not feasible. Similarly, the presence of only one restaurant, railroad, or airline in a small town suggests there might not be enough demand to support multiple businesses offering the same services, leading to a single provider naturally dominating the market.