Which of the following is most likely to be considered a natural monopoly?
A)a municipal water company
B)the mobile telephone industry
C)the baby care product industry
D)the cotton textile industry
E)the automobile industry

Question

Quizplus · Accepted Answer

A municipal water company is most likely to be considered a natural monopoly. This is because it is a public utility and faces high fixed costs of production, such as building and maintaining water pipes, making it more efficient to have one company providing the service rather than multiple competitors.

Which of the Following Is Most Likely to Be Considered