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.

Apply the concept of marginal productivity to determine the optimal number of workers to hire for maximizing profits.

Associate changes in the demand and supply of labor with changes in the equilibrium wage and quantity of labor.

Calculate the value of the marginal product of labor and understand its role in employment decisions.

Understand the impact of technological changes on labor demand and labor productivity.

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Definitions:

Credential Inflation

The phenomenon where the educational requirements for a job increase, even though the actual skills needed for the job do not.

Certificates

Official documents recognizing the completion of a course of study or verifying qualifications.

Degrees

Qualifications awarded by educational institutions, such as colleges or universities, to signify the completion of a course of study.

Meritocracy

A system where individuals are rewarded and advanced based on talent, effort, and achievements, rather than background or connections.