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.

---

Definitions:

Discrepancies

Differences or inconsistencies found within related facts, figures, or statements, often requiring further investigation or adjustment.

Variable N

A symbol or placeholder for an unknown or changing quantity in mathematics and science.

Certificate Of Deposit (CD)

A certificate that states there is a specific sum of money on deposit and guarantees the payment of a fixed interest rate after a certain period of time, usually seven days to ten years; deposits and withdrawals cannot be made with a CD.

Money Market Account

An account that pays a higher interest rate than other types of accounts, but usually requires a higher initial deposit and a higher minimum balance often with a limit on the number of transactions per month.