Geographic monopoly occurs when one producer provides a good or service to a geographic region. Example, in many small towns, there can only be one grocery store, one dry cleaner, or one theater.
Geographic monopolies generally appear in remote locations that, at most, can support just one supplier. For instance, a general store in a small community may be able to survive if it is the only shop providing essential goods.
Because of the small size of the town, the opening of a second general store may drive both shops out of business due to the limited size of the market, if the profits were split neither business would make money.
Learn some study tips for Economics courses at Georgetown University.
In the news, a company economics group has boosted its outlook for U.S. economic improvement this year and subsequent, specifically for job growth.
The March report from the National Association for Organization Economics forecasts more hiring, a reduced unemployment rate, a decreased inflation price and a lot more development in consumer spending in 2015, compared to the group's forecast December 2014.
The report, released recently also predicts far more investment by enterprises, as well as modest growth in stock rates. Read more at Sentry Review.