Which of the following is an example of a natural monopoly?

Correct option is B

Correct Answer: (B) Railways

Explanation:A natural monopoly occurs when a single company or entity can most efficiently provide a particular service or product, often because of high fixed costs and the nature of the industry that makes it impractical or inefficient for multiple companies to provide the same service.

• (B) Railways: This is a natural monopoly because building and maintaining the infrastructure (tracks, stations, etc.) for a railway system involves high capital investment, and having multiple companies run separate rail networks would be inefficient. Therefore, it is most practical for one company or entity to control the railway system in a given area.

• (A) Bookshop: This is not a natural monopoly. There can be multiple bookshops in the same area, and there is no significant reason why one bookshop should dominate the market.

• (C) Apple store in Delhi: This is not a natural monopoly either. Apple stores compete with each other and other retailers selling Apple products.

• (D) Malls: While malls might dominate a particular market in a region, they are not a natural monopoly because other shopping centers or malls can also operate in the same area.

Thus, railways is an example of a natural monopoly.