ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The oil industry was prone to what is called a natural monopoly because of the rarity of the products that it produced. John D. Rockefeller, the founder and chair of Standard Oil, and his partners took advantage of both the rarity of oil and the revenue produced from it to set up a monopoly.

Detailed explanation-2: -Natural gas, electricity companies, and other utility companies are examples of natural monopolies. They exist as monopolies because the cost to enter the industry is high and new entrants are unable to provide the same services at lower prices and in quantities comparable to the existing firm.

Detailed explanation-3: -The U.S. markets that operate as monopolies or near-monopolies in the U.S. include providers of water, natural gas, telecommunications, and electricity.

Detailed explanation-4: -Answer and Explanation: Although several companies held monopolies during the Gilded Age, one of the largest was John D. Rockefeller’s Standard Oil Company.

Detailed explanation-5: -An example of a bilateral monopoly would be when a labor union (a monopolist in the supply of labor) faces a single large employer in a factory town (a monopsonist).