Why are utilities, such as electricity and water, examples of natural monopolies? a-the cost of production restricts competition in the market. b-there are limited natural resources to meet demand. c-consumers only trust known companies to provide these essentials. d-there is no need for alternative options.

Utilities such as water and electricity are examples of a natural monopoly because the cost of production restricts competition in the market.  It is highly expensive to produce these resources, because of this there are normally only a couple options depending on where you live that will service your area. And in most cases, you are told which electric company and water company you are to use.