If you are the only seller of gasoline in a smaller town or community, your monopoly would result from:
A) sunk costs.
B) location.
C) economies of scale.
D) government restrictions.

Question

Quizplus · Accepted Answer

A monopoly based on location is often referred to as a natural monopoly, where the cost of entry into a market is so high that it prevents other competitors from entering. This can be the case in smaller towns or communities where there may not be enough demand to support multiple gasoline suppliers.

If You Are the Only Seller of Gasoline in a Smaller