In many geographic areas, utilities such as water and electricity are available from only one provider. This is an example of a level of competition called
Blank
______.

Question

In many geographic areas, utilities such as water and electricity are available from only one provider. This is an example of a level of competition called 
Blank
______.

BlackTom AI · Accepted Answer

The question describes a market condition where in many areas a single provider supplies a necessary service, such as water or electricity, and asks which level of competition this represents.
Option 1: monopolistic competition. This choice is not accurate because monopolistic competition involves many firms offering differentiated products, leading to competition in price and non-price factors. Here, the scenario describes a single provider, not many competitors.
Option 2: monopoly. In a monopoly, a single firm dominates the market with no close substitutes, often due to barriers to entry. The example given—utilities available from only one provider in a region—fits this description well, since residents rely on one company for essential services.
Option 3: oligopoly. An oligopoly features a small number of firms controlling the market, with potential interdependence in pricing and output. The question specifies only one provider in many areas, which contradicts the idea of a few competing firms.
Option 4: joint venture. A joint venture is a business arrangement where two or more parties collaborate on a specific project or venture. This does not describe a market structure where a single utility provider serves an area, so this is not appropriate for the scenario.
So, the most fitting label for the described situation is the one where a single firm governs the supply of a key service, with barriers preventing others from entering the market, aligning with the monopoly concept.

In many geographic areas, utilities such as water and electricity are available from only one provider. This is an example of a level of competition called Blank ______.

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