Which of the following is the best example of a natural monopoly?
A) cable television providers
B) new home builders
C) airline providers
D) grocery stores

Question

Quizplus · Accepted Answer

Cable television providers are the best example of a natural monopoly because of the high fixed costs involved with laying cables and establishing infrastructure. Once established, it becomes difficult for competitors to enter the market and pose a threat to the existing provider.

Which of the Following Is the Best Example of a Natural