Which statement is true?
A)Natural monopolies may occur in theory,but there are virtually no actual examples in today's economy.
B)All forms of a monopoly are illegal in the United States.
C)Many public utilities are natural monopolies.
D)None of these statements are true.

Question

Quizplus · Accepted Answer

Many public utilities, such as water and electricity providers, are natural monopolies because it is not economically feasible for multiple companies to provide these services in the same area due to high fixed costs. A is incorrect because there are examples of natural monopolies in today's economy, such as local cable companies. B is incorrect because not all monopolies are illegal, only those that use anticompetitive practices to maintain market power. D is incorrect because choice C is true.

Which Statement Is True