Question

question 8 (multiple choice worth 4 points) (lc) which of these is an example of a natural monopoly? electricity service grocery delivery retail store security driveway concrete repair

Explanation:

A natural monopoly occurs when a single firm can supply a good or service to an entire market at a lower cost than could two or more firms. Electricity service requires large - scale infrastructure (like power plants, transmission lines) with high fixed costs and low marginal costs. Having multiple providers would lead to inefficiency and duplication of infrastructure. Grocery delivery, retail store security, and driveway concrete repair are services that can be provided by multiple firms without significant inefficiency from duplication, so they are not natural monopolies.

Answer:

A. Electricity service