An Unregulated Natural Monopoly

question 62

Multiple Choice

An unregulated natural monopoly

• A)could produce output at higher costs than two firms could if it supplied all the quantity that buyers would take off the market.
• B)will charge a price equal to marginal cost.
• C)would produce efficiently if it behaved as a normal profit-maximizing monopoly.
• D)will likely force society to face a deadweight loss.
• E)will charge a price below marginal cost.

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Definitions:

Trypsin

A pancreatic enzyme that digests polypeptides to short peptides.

Chymotrypsin

A digestive enzyme that breaks down proteins in the small intestine into smaller peptides.

Pancreas

The pancreas is a glandular organ in the digestive system and endocrine system of vertebrates. It produces enzymes that aid in digestion and hormones such as insulin, which regulates blood sugar.

Ghrelin

A peptide hormone that stimulates appetite; secreted by the stomach