Question

Which is an example of a natural monopoly? (5 points) Select one: a. A company that enters the market and requires new infrastructure b. A group of companies that own all the sources of production c. A milk product that is produced by multiple companies d. A single source for electricity in your community

Answer 1

A natural monopoly is a type of monopoly that exists as a result of the high fixed costs or startup costs of operating a business in a specific industry. Additionally, natural monopolies can arise in industries that require unique raw materials, technology or other similar factors to operate.

Answer 2

d. A single source for electricity in your community is the answer.