Which of the following is an example of a natural monopoly?
A)A local electricity supplier.
B)A dry cleaner in New York City.
C)An aircraft manufacturer.
D)A pharmaceutical company that holds a patent on a new drug.

Question

Quizplus · Accepted Answer

A local electricity supplier is an example of a natural monopoly because it is more efficient for only one firm to provide the service due to high fixed costs and difficulty for new competitors to enter the market.

Which of the Following Is an Example of a Natural