Which of the following suppliers is most likely to be a monopolist?

• A. A tech startup offering a new app in a market with many similar apps
• B. A farmer selling wheat in a large competitive market
• C. A local water utility company that is the sole provider in a city
• D. A clothing retailer in a shopping mall with several competitors

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the definition of a monopolist. A monopolist is a single supplier in a market with no close substitutes, giving them significant market power to set prices.
2. Step 2: Analyze each option to see if the supplier is the sole provider or faces competition. For example, a tech startup with many similar apps faces competition, so it is not a monopolist.
3. Step 3: Consider the farmer selling wheat in a large competitive market. Since there are many farmers selling identical products, this is a perfectly competitive market, not a monopoly.
4. Step 4: Look at the local water utility company that is the sole provider in a city. Being the only supplier with no close substitutes fits the definition of a monopoly.
5. Step 5: Evaluate the clothing retailer in a shopping mall with several competitors. Multiple competitors mean no monopoly power here.