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.
D) Total production for the industry should increase because of the efficiency generated by increased competition.
Correct Answer:
Verified
Q2: Market failure
A)Occurs whenever the government intervenes in
Q3: All of the following are examples of
Q4: The long-run average total cost curve of
Q5: When firms have the ability to restrict
Q6: Antitrust enforcement focuses on market structure,while government
Q7: A natural monopoly is a desirable market
Q8: Which of the following is used as
Q9: A natural monopoly
A)Has low barriers to entry.
B)Has
Q10: Which of the following is a form
Q11: Which of the following is a form
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