Which of the following is the best example of a natural monopoly?
A)gold mining in the Colorado Rocky Mountains
B)filmmaking in Hollywood
C)electrical service to homes in Seattle
D)production of film by Kodak
E)production of computers by IBM

Question

Quizplus · Accepted Answer

Electrical service to homes in Seattle is the best example of a natural monopoly because it would be inefficient to have multiple companies providing electrical service due to high fixed costs and the need for a large-scale infrastructure. Having multiple companies would lead to duplication of resources and higher costs for consumers.

Which of the Following Is the Best Example of a Natural