Breaking up a natural monopoly would be
A) economically efficient.
B) illegal.
C) impossible.
D) inefficient.

Question

Quizplus · Accepted Answer

Breaking up a natural monopoly is generally considered inefficient because natural monopolies arise in industries where the costs of production are lowest when a single firm supplies the entire market. Splitting such a monopoly into multiple competitors would likely lead to higher costs and prices for consumers, due to the loss of economies of scale.

Breaking Up a Natural Monopoly Would Be