Which of the following is an example of a natural monopoly?
A) the Pittsburgh Penguins hockey team, a National Hockey League team
B) Ford Motors, the large automobile producing company
C) Florida Power and Light, an electric utility in Florida
D) Sony, the Japanese producer of the Playstation III
E) JCPenney, the large department store chain

Question

Quizplus · Accepted Answer

Florida Power and Light is an electric utility, which often falls under the category of a natural monopoly due to the high fixed costs of infrastructure and distribution networks. It can be highly inefficient to have multiple companies providing electric service in a given area, making it more practical to have only one company.

Which of the Following Is an Example of a Natural