Natural monopolies differ from other forms of monopoly because they
A) are not subject to barriers to entry.
B) are not regulated by government.
C) generally don't make a profit.
D) are generally not worried about competition eroding their monopoly position in the market.

Question

Quizplus · Accepted Answer

Natural monopolies have a unique market structure that allows them to achieve economies of scale and operate at the lowest possible cost. However, unlike other monopolies that may face competition from other firms or products, natural monopolies face little to no competition due to the significant barriers to entry. Consequently, they are generally not worried about their position in the market being eroded by competition, unlike other monopolies.

Natural Monopolies Differ from Other Forms of Monopoly Because They