Question

Which of the following best fits the description of a natural monopoly? Tap water service has a monopoly since economies of scale make it impractical for multiple companies to place water pipes. The US government has granted the Post Oce a monopoly on the delivery of ?rst class mail. 9. Until 2016, AstroZeneca had a patent on Celestra, a cholesterol medication. Prior to the 1940's, Alcoa had a monopoly because it controlled all of the US bauxite mines.

          Which of the following best fits the description of a natural monopoly?
Tap water service has a monopoly since economies of scale make it impractical
for multiple companies to place water pipes.
The US government has granted the Post Oce a monopoly on the delivery of
?rst class mail. 9.
Until 2016, AstroZeneca had a patent on Celestra, a cholesterol medication.
Prior to the 1940's, Alcoa had a monopoly because it controlled all of the US
bauxite mines.

Which of the following best fits the description of a natural monopoly?
Tap water service has a monopoly since economies of scale make it impractical
for multiple companies to place water pipes.
The US government has granted the Post Oce a monopoly on the delivery of
?rst class mail. 9.
Until 2016, AstroZeneca had a patent on Celestra, a cholesterol medication.
Prior to the 1940's, Alcoa had a monopoly because it controlled all of the US
bauxite mines.

Added by Courtney S.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Varun Indurthi

Step 1

This means that as the company produces more, the average cost of production decreases. Out of the options given, the best fit for a natural monopoly is the tap water service. This is because the infrastructure required to provide water pipes is expensive and it Show more…

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Which of the following best fits the description of a natural monopoly? Tap water service has a monopoly since economies of scale make it impractical for multiple companies to place water pipes. The US government has granted the Post Office a monopoly on the delivery of first-class mail. Until 2016, AstraZeneca had a patent on Celestra, a cholesterol medication. Prior to the 1940s, Alcoa had a monopoly because it controlled all of the US bauxite mines.