Which one of the following companies is NOT a natural monopoly?
A)The International Nickel Company
B)California Edison Electric Company
C)Southwestern Bell Telephone Company
D)Keyspan Gas Company

Question

Quizplus · Accepted Answer

A natural monopoly is a situation where a single company is the most efficient provider of a product or service, due to high fixed costs of entry or economies of scale. The other three companies listed operate in industries where it is more efficient to have one large provider, making them natural monopolies. However, the International Nickel Company operates in an industry with multiple competitors, therefore it is not a natural monopoly.

Which One of the Following Companies Is NOT a Natural