If a natural monopoly was forced to break up into several small competitive firms,the
A) Cost of production should fall as the smaller firms become more efficient.
B) Price charged by the competitive firms should decrease as the firms become more efficient.
C) Price charged by the competitive firms should increase because they no longer have economies of scale.
Correct Answer:
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Q14: If a natural monopoly was broken into
Q15: The long-run average total cost curve of
Q16: A natural monopoly is a desirable market
Q17: When firms have the ability to restrict
Q18: Antitrust enforcement focuses on market structure,while government
Q20: When the market does not lead to
Q21: Profit regulation occurs when regulation requires the
Q22: If a natural monopoly is forced to
Q23: If the government regulated a natural monopolist
Q24: Output regulation is likely to result in
A)A
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