Question

A monopoly based on sole state ownership of production and distribution network is known as ________.

• A. natural monopoly
• B. technological monopoly
• C. government monopoly
• D. geographical monopoly

Answer 1

The correct option is A natural monopoly

A natural monopoly is a type of monopoly that comes into existence when the seller pays a high price for setting up or conducting the business. It can also be seen in an industry which requires unique raw material, technology to operate. Hence, a monopoly based on sole state ownership of production and distribution network is known as the natural monopoly.