Question

Which of the following best ts the description of a natural monopoly?

a) The US government has granted the Post O�ce a monopoly on the delivery of �rst class mail. 9.

b)Prior to the 1940's, Alcoa had a monopoly because it controlled all of the US bauxite mines.

c)Until 2016, AstroZeneca had a patent on Celestra, a cholesterol medication.

d)Tap water service has a monopoly since economies of scale make it impractical for multiple companies to place water pipes.

Answer 1

Option A

Explanation: The Post is an example of utility company which was a natural monopoly a granted by the government.