Which of the following is usually considered a natural monopoly?

Question

Quizplus · Accepted Answer

Natural monopolies typically involve industries where the infrastructure or capital costs of entry are so high that it is not practical for multiple competitors to exist, such as utilities (water, electricity) or rail networks. None of the options provided (A major car manufacturer, a car stereo installer, overnight mail services, state universities) fit the criteria of a natural monopoly, as they do not inherently require such high infrastructure or capital costs that would prevent competition.

Which of the Following Is Usually Considered a Natural Monopoly