SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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This type of monopoly exists because it is efficient to allow one producer to be the only provider. Xcel energy being the sole provider of electricity in my neighborhood is an example of this.
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Franchise
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Patent/copy right
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Natural Monopoly
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Resource Monopoly
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Explanation:
Detailed explanation-1: -A natural monopoly usually exists when it’s efficient to have only one company or service provider in an industry or geographic location.
Detailed explanation-2: -In short, natural monopolies exist because it is able to provide a product or service at a lower cost than a competitive market would offer. In part, this is due to the efficiencies that economies of scale offers.
Detailed explanation-3: -Pure Monopoly This firm is the sole producer of a product, and there are no close substitutes.
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