In Natural and Platform Monopolies, Economists Argue That Regulation

question 82

Multiple Choice

In natural and platform monopolies, economists argue that regulation:

• A) is not explicitly desirable, and society should rather rely on direct competitive forces.
• B) should be heavily enforced by government.
• C) is desirable, and should involve strict enforcement.
• D) is irrelevant.

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Definitions:

External Costs

Costs that are not borne by the producer or consumer of a good or service, but by society or the environment.

MSC (Marginal Social Cost)

The total cost to society of producing an additional unit of a good or service, including both the private costs and any external costs.

Efficient Level

Refers to the point at which a system, process, or economy operates at maximum productivity with minimal waste and expense.

External Costs

Costs that are not borne by the producer or consumer of a good or service, but by society as a whole, such as pollution.