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_
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