Which is the most accurate statement?
A)All monopolists are very large companies.
B)IBM is an example of a monopoly.
C)In order to maintain monopolies,there must be barriers to market entry.
D)Nearly all monopolies are very profitable.
E)Public utilities are examples of natural monopolies.

Question

Quizplus · Accepted Answer

Public utilities, such as electricity and water providers, are examples of natural monopolies because it is more efficient to have one provider servicing an entire area rather than having multiple providers competing with one another. This is because there are high fixed costs associated with establishing the necessary infrastructure and reducing duplication can lead to cost savings.

Which Is the Most Accurate Statement