If a natural monopoly is broken up into many smaller firms then
A) the price will decrease.
B) the average total costs of production will increase.
C) efficiency will increase.
D) None of the above because it is illegal to break up a natural monopoly into smaller firms.
B
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Which of the following is included in M1?
A) the $200 you charged on your credit card to purchase your textbooks B) the $200 check you wrote to purchase your textbooks C) the $200 in cash you used to purchase your textbooks D) the $200 loan you arranged to purchase your textbooks
A lump sum tax can create an excess burden.
A. True B. False C. Uncertain
What portion of the demand curve will profit-maximizing monopolists choose to operate on: the inelastic portion or elastic portion? Why?
If the central bank raises the rate at which it increases the money supply, then in the short run unemployment is
a. above its natural rate. The short-run Phillips curve shifts right as the economy moves back to its natural rate of unemployment. b. above its natural rate. The long-run Phillips curve shifts left as the economy moves back to its natural rate of unemployment. c. below its natural rate. The short-run Phillips curve shifts right as the economy moves back to its natural rate of unemployment. d. below its natural rate. The long-run Phillips curve shifts left as the economy moves back to its natural rate of unemployment.