If a Natural Monopoly Was Forced to Break Up into Several

question 2

Multiple Choice

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.

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Definitions:

Rules and Authority

Principles or guidelines enforced by individuals or organizations in positions of power or control.

Sociometric Status

A measure of an individual's social standing within a group, based on the extent to which they are liked, disliked, chosen as a friend, or rejected by their peers.

Aggressive

Behaviors or tendencies that are hostile, destructive, or violent, often resulting from frustration or threat.

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Refers to rules or norms that govern behaviors within a society, including manners, etiquette, and social rituals, which can vary between cultures.