alleryStart learning →Another type of natural monopoly occurs when a company has control of a:
AScarce physical resource
BPopular brand name
CGovernment department
DConsumer mailing list
Answer & Solution
Correct answer: A. Scarce physical resource
1. Not every natural monopoly comes from cost structure.
2. Another type of natural monopoly occurs when a company has control of a scarce physical resource.
3. Owning the only source of an input keeps rivals out as effectively as any law.
4. A brand name is protected by trademark, which would make it a legal barrier instead.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 9 'Monopoly', sections 9.1-9.2_
Keep practising Monopoly
Browse all Monopoly questions for AP Microeconomics, or explore more Economics topics.
Related questions
Complete the monopoly rulesKey in the monopoly figuresTrue or false: monopolyMatch each protection to what it coversLegal or natural monopoly?Comparing patents and trade secrets, a patent differs because it:The United States South's near monopoly in the mid-nineteenth century was in supplying whiA monopolist in the real world often lacks enough information to analyse its entire: