ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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utilities/water
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department stores
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auto industry
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commercial airlines
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Detailed explanation-1: -Examples of the natural monopoly include public utilities, such as water services and electricity.
Detailed explanation-2: -Water has traditionally been seen as an industry characterized by regional or local natural monopoly, with franchising and contracting out, yardstick competition, and capital market competition being feasible, but not direct competition.
Detailed explanation-3: -Types of Natural Monopolies For example, the utility industry is a natural monopoly. The utility monopolies provide water, sewer services, electricity transmission, and energy distribution such as retail natural gas transmission to cities and towns across the country.
Detailed explanation-4: -A monopoly is a firm who is the sole seller of its product, and where there are no close substitutes. An unregulated monopoly has market power and can influence prices. Examples: Microsoft and Windows, DeBeers and diamonds, your local natural gas company.
Detailed explanation-5: -Thurn and Taxis Mail. The private company operated postal service back in the 1800s and enjoyed a monopoly on postal services. Hudson’s Bay Company. The company had a monopoly on the fur trade in Canada, and is a Canadian company. Luxottica (ESLOF) Dutch East India Company. Pan Am Airways. 28-Jan-2021