An example of a natural monopoly would be
A)a congested public freeway.
B)an airline flight that has been overbooked.
C)local cable television service.
D)public parking.

Question

Quizplus · Accepted Answer

A natural monopoly occurs when it is more efficient for one company to produce a good or service due to high fixed costs and economies of scale. Local cable television service is an example of a natural monopoly since it would be costly for multiple cable companies to install wiring and equipment in each household. As a result, one company is able to provide service to the entire area, making it more efficient and cost-effective.

An Example of a Natural Monopoly Would Be