Natural monopolies are likely to include all of the following EXCEPT:
A) a diamond mining company.
B) a gas company.
C) an electricity company.
D) railways.

Question

Quizplus · Accepted Answer

Natural monopolies typically occur in industries where the infrastructure costs and other barriers to entry are so high that it is most efficient for a single firm to supply the entire market. Gas companies, electricity companies, and railways are examples of such industries. A diamond mining company does not fit this description as it does not require extensive infrastructure that creates a natural monopoly.

Natural Monopolies Are Likely to Include All of the Following