ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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it is a technological monopoly; no other company has the tech necessary to provide this service
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it is a natural monopoly; it would not be efficient for more than one company to provide this service
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it is a patent monopoly; the government has given the company exclusive rights to provide this service
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it is an industrial monopoly; it bought out all of its competitors that previously provided this service.
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Detailed explanation-1: -The very high costs of laying track and building a network, as well as the costs of buying or leasing the trains, would prohibit, or deter, the entry of a competitor.
Detailed explanation-2: -Another example of a natural monopoly is a railroad company. The railroad industry is government-sponsored, meaning their natural monopolies are allowed because it’s more efficient and the public’s best interest to help it flourish.
Detailed explanation-3: -Answer and Explanation: A monopoly is any market controlled by a single seller. A natural monopoly is a specific type of monopoly. A natural monopoly is a monopoly that was created because of high start-up costs, an economy of scale, or other naturally occurring barriers to entry.
Detailed explanation-4: -A natural monopoly is an occurrence of monopoly due to high fixed and start-up cost or use of some technological different which keeps the other firms out of the market. So the firm that provides electricity to all homes has a natural monopoly.