Which one of the following is most likely to be a natural monopoly?
A)sandwich shops
B)printing services
C)welding services
D)automotive service
E)electric utilities

Question

Quizplus · Accepted Answer

Electric utilities are likely to be a natural monopoly due to high fixed costs and economies of scale. It is more efficient for one firm to provide electricity to the entire market rather than having multiple firms duplicating infrastructure and incurring higher costs.

Which One of the Following Is Most Likely to Be