10
practice testMultiple Choice

Practice Test

Question 10 • Economics and Personal Finance

Why are utilities, such as electricity and water, examples of natural monopolies?

Answer
A
The cost of production restricts competition in the market.
B
There are limited natural resources to meet demand.
C
There is no need for alternative options.
D
Consumers only trust known companies to provide these essentials.
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Why are utilities, such as electricity and…