If the OpenTable Website was a natural monopoly,dividing the business equally between two firms that each supplied the same number of online reservations would
A)decrease marginal cost.
B)raise average total cost.
C)increase total revenue.
D)make marginal revenue less elastic.

Question

Quizplus · Accepted Answer

Dividing the business equally between two firms that each supplied the same number of online reservations would raise average total cost because each firm would have to duplicate the fixed costs of the monopoly.

If the OpenTable Website Was a Natural Monopoly,dividing the Business