The Government in the Town of Rodenham Has Granted Exclusive

Multiple Choice

The government in the town of Rodenham has granted exclusive rights to a few telecommunications companies to operate in specific geographic areas. The companies have to provide their services in the areas allotted to them, and no company is allowed to extend its services to the areas allotted to its competitors. This system has been put in place because it would be inconvenient for each company to build its own infrastructure in all areas. The given scenario exemplifies:

A) pure competition.
B) a natural monopoly.
C) monopolistic competition.
D) an oligopoly.