Public utilities are the classic examples of
A) industries with network effects.
B) industries protected by patents.
C) natural monopolies.
D) industries owning a scarce factor of production.

Question

Quizplus · Accepted Answer

Public utilities, such as water, electricity, and natural gas providers, are often considered natural monopolies because the infrastructure required to deliver these services is so costly that having more than one provider is inefficient. This makes it natural for a single company to serve the entire market.

Public Utilities Are the Classic Examples of