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Margarita [4]
3 years ago
10

Why are utilities, such as electricity and water, examples of natural monopolies?

Social Studies
2 answers:
PolarNik [594]3 years ago
6 0
A. I just took the test
Harman [31]3 years ago
4 0
Utilities such as water and electricity are examples of a natural monopoly because the cost of production restricts competition in the market.  It is highly expensive to produce these resources, because of this there are normally only a couple options depending on where you live that will service your area. And in most cases, you are told which electric company and water company you are to use. 
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