Which of the following is not a natural monopoly?
A)De Beers Consolidated Mines
B)pandas from China
C)professional sports leagues
D)Starbucks
E)Alcoa in the 1900s

Question

Quizplus · Accepted Answer

A natural monopoly is a situation where a single firm can produce a good or service at a lower cost than any potential competitor, due to economies of scale. While De Beers, professional sports leagues, Alcoa, and even pandas from China can all be considered natural monopolies in certain respects, Starbucks does not meet the definition of a natural monopoly as it has numerous competitors in the coffee industry.

Which of the Following Is Not a Natural Monopoly