Which of the following defenses to monopolization can an electricity supplier to a small town,that can support only one competitor,claim?
A) relevant market
B) willful monopolizing
C) innocent acquisition
D) natural monopoly

Question

Quizplus · Accepted Answer

The electricity supplier can claim natural monopoly as a defense to monopolization since the small town can only support one competitor, making it uneconomical for multiple firms to enter the market. A natural monopoly arises when a single firm can produce output at a lower cost than any combination of two or more smaller firms, and it is often seen in industries such as utilities where large fixed costs are required to provide the service.

Which of the Following Defenses to Monopolization Can an Electricity