A natural monopoly,such as the Internet,is
A) nonrival and excludable.
B) rival and excludable.
C) nonrival and nonexcludable.
D) rival and nonexcludable.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

A natural monopoly exists when a single firm is the most efficient producer in the market, often due to high fixed costs or economies of scale. The Internet is a nonrival good because one person's use of it does not diminish another person's use of it. However, it is also excludable because access to the Internet is controlled by private companies who can charge for access. Therefore, choice A is the correct answer.

A Natural Monopoly,such as the Internet,is