Which type of barrier to entry allowed the electric company to maintain a monopoly over the production of electricity?

Question

Quizplus · Accepted Answer

Economies of scale refers to the economic principle that long-run average total cost decreases as the quantity of output increases. In the case of the electric company, they were able to achieve economies of scale because they were the only producer of electricity in the area, allowing them to spread fixed costs over a larger quantity of output. This made it difficult for potential competitors to enter the market and compete with the electric company, effectively maintaining their monopoly.

Which Type of Barrier to Entry Allowed the Electric Company