If a Natural Monopoly Is Broken Up into Smaller Competing

question 69

Multiple Choice

If a natural monopoly is broken up into smaller competing firms, the price of the product:

• A) will increase because the monopolist no longer has to worry about keeping rivals from entering the industry
• B) will decrease because smaller firms are price takers
• C) will decrease because competition has increased
• D) will increase because the smaller competing firms will face higher average costs of production than the natural monopolist will

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Definitions:

E.e.

Enantiomeric excess, a measure of the purity of an enantiomer in a mixture, indicating the percentage difference between two enantiomers' concentrations.

Asymmetric Carbon

A carbon atom bonded to four different groups, creating a chiral center.

Dextro-

Prefix indicating the right-handed (clockwise) configuration of a chiral molecule, often used in stereochemistry.

Levorotatory

Relating to a substance that rotates the plane of polarized light to the left.