Which scenario best illustrates the concept of a monopoly?

The scenario that best illustrates the concept of a monopoly is one in which a single corporation controls the supply of a vital resource. A monopoly exists when a single seller or producer dominates a market and has significant control over the price and supply of a product or service. In this case, when one corporation controls the entire supply of a crucial resource, it can set prices without competition, leading to the potential for higher prices and limited choices for consumers.

This monopolistic structure often arises in industries where high barriers to entry prevent other companies from competing, such as in utilities or raw materials. The lack of competition allows the monopolist to exert power over the market and consumers, making it a clear example of a monopoly in action.

The other scenarios, while they may involve competitive dynamics or localized markets, do not showcase the characteristics of a monopoly where one entity has exclusive control over an essential resource or product.