Baking soda, a common household item, is produced from a mineral deposit called sod aash. There is only one soda ash deposit in the United States, and it is owned by the Leg and Plier Baking Soda Company. It is reasonable to describe this firm as a(n)
A) unbalanced oligopoly
B) balanced oligopoly
C) acquisitive oligopoly
D) natural monopoly
E) unnatural monopoly

Question

Quizplus · Accepted Answer

The Leg and Plier Baking Soda Company is described as a natural monopoly because it is the sole owner and producer of baking soda from the only soda ash deposit in the United States, indicating it controls the market due to its unique access to a natural resource.

Baking Soda, a Common Household Item, Is Produced from a Mineral