Which of the following is an example of a natural monopoly?
A) automobiles
B) sporting goods
C) motion pictures
D) electric companies

Question

Quizplus · Accepted Answer

A natural monopoly occurs when a single firm can produce a good or service at a lower cost than any potential competitor. Electric companies are a typical example of a natural monopoly because of the high start-up costs to enter the industry and the fact that it is more efficient to have one provider of electricity in a given area.

Which of the Following Is an Example of a Natural