GCE Commerce 1989 Question 74

Question 74

Government and Business

It is advantageous to provide services which are natural monopoly through

  1. A.sole traders
  2. B.partnership
  3. C.public limited liability companies
  4. D.public enterprises
  5. E.co-operative societies
Show the answer and explanation

Answer: D (public enterprises)

Explanation

Natural monopolies such as water and electricity are best run by public enterprises so that the public is not exploited.