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11 February, 20:02

Why are utilities, such as electricity and water, examples of natural monopolies?

a. The cost of production restricts competition in the market.

b. There are limited natural resources to meet demand.

c. Consumers only trust known companies to provide these essentials.

There is no need for alternative options.

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  1. 11 February, 20:10
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    The utilities are example of natural monopolies because the cost of production restricts competition in the market. The production of water and electricity does not involve many competitors because it is made by big companies that do not compete each other because they know that consumers need it.
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