What kind of economic impact does a geographic monopoly typically have?

A geographic monopoly occurs when a single company or entity dominates an entire market within a specific geographical area, which significantly influences various economic factors. The presence of such a monopoly typically leads to higher prices for consumers, primarily due to the lack of competition. Without alternative suppliers, consumers are forced to pay whatever price the monopolist sets, as they have no other options available. This results in a market where the monopolist can control the pricing structure, often leading to prices that are higher than they would be in a competitive market where multiple businesses vie for customers.

In addition to pricing, a geographic monopoly can also impact the availability of goods and services, potentially leading to a lower variety of options for customers. While higher prices may lead to increased profits for the monopolist, it can also deter new entrants into the market since they may perceive the barriers to entry as too high. This is why the assertion that a geographic monopoly leads to higher prices due to a lack of alternatives is the most accurate choice among the provided options.