Regulation Can Reduce the Profits of a Natural Monopoly by Imposing

question 105

Multiple Choice

Regulation can reduce the profits of a natural monopoly by imposing a per-unit output tax (rather than directly regulating price) .Such a tax would cause the monopolist's
1) average total cost curve to shift upward;
2) marginal cost curve to shift upward;
3) demand curve to shift to the left.

• A)1 only
• B)2 only
• C)3 only
• D)1 and 2
• E)2 and 3

---

Definitions:

EEG

Electroencephalogram, a test that measures the electrical activity of the brain using small, flat metal discs attached to the scalp.

Sleep Study

A test conducted to diagnose and assess sleep disorders, typically involving overnight monitoring of various physiological parameters.

Brain Wave

A form of electrical activity in the brain that can be measured and is indicative of various states of consciousness.

Cognitive Processes

The mental actions or processes involved in acquiring knowledge and understanding through thought, experience, and the senses.