Breaking Up a Company That Has a Natural Monopoly Would

question 12

Multiple Choice

Breaking up a company that has a natural monopoly would

• A) result in higher production costs.
• B) result in lower production costs.
• C) benefit society.
• D) result in lower prices for consumers.
• E) increase government tax revenue.

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Definitions:

Domestic Supply Curves

Graphical representations of the relationship between the price of a good or service and the quantity of that good or service supplied domestically.

Domestic Demand Curves

Graphical representations showing the quantity of a particular good or service that consumers in a domestic market are willing and able to purchase at various prices.

Import Demand Curves

Graphs showing the quantities of a good that an economy is willing to import at different price levels.

Export Supply Curves

Graphical representations showing the relationship between the price of goods in the international market and the quantity of those goods a country is willing to supply for export.