If the government attempts to break up a natural monopoly to enforce competition in an industry
A. the average cost of producing the good will increase.
B. the smallest firm will have a significant cost advantage over the larger, less efficient firms.
C. the average cost of producing the good will decrease.
D. the price paid by consumers will be expected to remain the same.
A. the average cost of producing the good will increase.
You might also like to view...
Use the following table to answer the question below.Jake's Production Possibilities ScheduleJane's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn01600801012020602080404030406020400800One pound of green beans costs Jake ________ pound(s) of corn. One pound of green beans costs Jane ________ pound(s) of corn.
A. 1, 4 B. 4, 1 C. 1, 1/4 D. 1/4, 1
Someone who values a lottery at its expected value is
a. A risk lover b. Risk neutral c. Risk averse d. most likely to play a lottery
The increase in the overall level of prices is known as _____
Fill in the blank(s) with correct word
Consider the following net benefits (measured in billions of dollars) that will result from the passage of two legislative bills, X and Y:
(a) Identify the logrolling opportunity present in this situation.
(b) Identify the potential gains to voters.
(c) Explain why logrolling is efficiency enhancing.