Which of the following businesses has a natural monopoly?
A) A provincial electric utility
B) Via Rail
C) A Chapters bookstore
D) Pepsi
E) De Beers Diamonds

Question

Quizplus · Accepted Answer

A provincial electric utility has a natural monopoly because it would be too expensive and impractical for more than one company to provide electricity to a particular region. This is due to the high fixed costs of building and maintaining the necessary infrastructure. Via Rail, Chapters bookstore, Pepsi, and De Beers Diamonds do not have natural monopolies.

Which of the Following Businesses Has a Natural Monopoly