Which of the following is an example of a natural monopoly?
A) SA Water, the water company in South Australia.
B) David Jones, the large department store chain.
C) The Adelaide Crows, an AFL team.
D) Ford Motors, the large car-producing company.
E) Sony, the Japanese producer of the PlayStation III.

Question

Quizplus · Accepted Answer

SA Water is a natural monopoly because it is the only provider of water distribution and sewerage services in South Australia, making it impossible for any other company to compete in the market.

Which of the Following Is an Example of a Natural