If a Natural Monopoly Was Broken into Several Smaller Competing

question 45

Multiple Choice

If a natural monopoly was broken into several smaller competing firms,

• A)Consumers would lose because of less competition.
• B)Producers would be better off because they would have greater market share.
• C)Society would be worse off because the economies of scale would be destroyed.
• D)Workers would be worse off because fewer jobs would be available.

---

Definitions:

Net Transfers

The net amount of money, goods, or services being transferred from one entity to another, after accounting for inflows and outflows.

Balance of Capital

The net flow of capital, such as money and assets, into or out of a country, reflecting all financial transactions.

Financial Account

A component of a country’s balance of payments that records transactions of international investments, both private and public.

Financial Account Items

Components of the financial account in the balance of payments, representing transactions that involve financial assets and liabilities across borders.