Read the Following Scenario and Answer the Questions Below

question 32

Multiple Choice

Read the following scenario and answer the questions below.
The formation of sinkholes has become a fairly common phenomenon in the state of Florida. Most sinkholes are small, but some sinkholes have led to catastrophic property damage and loss of life. One September day in 1999, folks began to notice that Lake Jackson in the panhandle region was shrinking. Within a few days, it was almost gone. A sinkhole had opened beneath the lake and drained it, along with all of the fish and alligators. Another sinkhole formed just 10 miles from Walt Disney World in August 2013, swallowing a 48- unit villa at Summer Bay Resort.
As aquifers lose water, their substrates can become weaker and less capable of supporting overlying strata and any human structures built upon them. In such cases, the land surface above may subside. Sometimes subsidence can occur locally and suddenly, in the form of sinkholes, areas where the ground gives way with little warning. Once the ground subsides, soil becomes compacted, losing the porosity that enabled it to hold water. Recharging a depleted aquifer may therefore become more difficult.
-A serious problem that results from excessive water withdrawn from aquifers is that _____________

• A)the soils contaminate the aquifer, making it unfit for human use
• B)the aquifer decreases in size and new aquifers form
• C)the water tends to overflow and flood the entire area
• D)the aquifer increases in size, draining a larger surface area and leaving less water in rivers, streams, and lakes
• E)the surrounding soils are compacted and the size of the aquifer is reduced

Understand the characteristics and effects of price discrimination by monopolists.

Recognize the role of government regulation and antitrust laws in addressing monopoly power.

Analyze the effects of mergers on market power and efficiency.

Identify the conditions under which a monopolist can practice perfect price discrimination and its efficiency implications.

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Definitions:

Enron

was a U.S.-based energy company that collapsed in 2001 due to one of the largest accounting fraud scandals in history.

Financial Deregulation

The process of removing or reducing government restrictions on financial markets and institutions, often with the intent to increase efficiency, competitiveness, and innovation in the financial sector.

European Banks

Financial institutions based in Europe, playing key roles in the global financial system through lending, investment, and other financial services.