Some electrical utilities are monopolies because of
A) government restrictions that prevent new firms from entering the market.
B) ownership of resources without close substitutes.
C) diseconomies of scale.
D) their inability to earn profits.

Question

Quizplus · Accepted Answer

Government restrictions, such as regulations and licensing requirements, can make it difficult or impossible for new firms to enter the market and compete with existing utility companies, leading to monopolies.

Some Electrical Utilities Are Monopolies Because of