Question

Which is an example of a natural monopoly?

Answer 1

The correct answer is letter B

Answer 2

The correct answer is D. A single source for electricity in your community

Explanation:

In societies, a natural monopoly occurs when certain services or products can only be provided by one entity or company, especially as the cost of infrastructure or specialized technologies make difficult for other companies to offer the same service or product and having only one company or entity is efficient. This occurs in the case of electricity, water services and similar that are usually control by only one entity in each city or zone. Considering this, the one that is an example of monopoly is "A single source for electricity in your community" because this describes a monopoly as in monopolies only one entity provides a service or product and also this is a natural monopoly as the infrastructure and costs of providing electricity made difficult for other companies to do it.