alleryStart learning →A monopoly where the barrier to entry is something other than legal prohibition is a:
ALegal monopoly
BPublic monopoly
CGlobal monopoly
DNatural monopoly
Answer & Solution
Correct answer: D. Natural monopoly
1. The two named kinds of monopoly are defined against each other.
2. One is natural monopoly, where the barriers to entry are something other than legal prohibition.
3. The other is legal monopoly, where laws prohibit or severely limit competition.
4. Economies of scale combined with market size are a typical natural barrier.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 9 'Monopoly', sections 9.1-9.2_
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