If a natural monopoly is forced to break up into many smaller competitive firms,prices will most likely
A) fall dramatically.
B) fall somewhat.
C) stay about the same.
D) rise.
E) there is not enough information available to answer this question.

Question

Quizplus · Accepted Answer

When a natural monopoly is broken up into smaller competitive firms, the market power of the original monopoly is reduced, which can lead to increased competition and higher costs for the individual firms. As a result, prices are likely to rise, although the extent of the price increase may vary depending on the specifics of the market and the particular firms involved.

If a Natural Monopoly Is Forced to Break Up into Many