Think about cost structures associated with each of the following and decide which is most likely not to be a natural monopoly.
A) personal computer company
B) electric company
C) cable television company
D) water company
E) local telephone company

Question

Quizplus · Accepted Answer

A personal computer company is most likely not to be a natural monopoly because the production and distribution of personal computers involve competitive markets with multiple manufacturers and brands. Unlike utilities (electric, water, cable television, and local telephone services), which require extensive, region-specific infrastructure that discourages multiple providers, personal computer companies can operate and compete globally without such constraints.

Think About Cost Structures Associated with Each of the Following