Natural monopoly is common in the ________ industry.
A) trucking
B) agricultural
C) electric power
D) automobile
E) health care

Question

Quizplus · Accepted Answer

Electric power industry often requires huge fixed costs to establish and maintain the infrastructure, which leads to the natural monopoly. Once a company dominates the market by providing electricity, it becomes difficult for new entrants to set up the same infrastructure and compete in the market. Therefore, electric power companies enjoy natural monopolies. The other industries listed may have competitive markets and do not necessarily require the same infrastructure and fixed costs to operate.

Natural Monopoly Is Common in the ________ Industry