When a government splits a natural monopoly vertically,it is breaking the company up:
A) along its stages of production.
B) into smaller companies providing the same goods.
C) in order to maximize its profits.
D) in order to capture all efficiencies possible.

Question

Quizplus · Accepted Answer

Splits vertically mean the government divides the company based on its stages of production. This allows for more competition in the market and prevents the natural monopoly from taking advantage of consumers.

When a Government Splits a Natural Monopoly Vertically,it Is Breaking