In a Natural Monopoly

question 6

Multiple Choice

In a natural monopoly,

• A)society would be better off if antitrust laws were used to create many different firms in the market.
• B)the marginal cost curve is positively sloped.
• C)if the government requires marginal cost pricing, it will likely have to subsidize the firm.
• D)the marginal revenue curve is horizontal.

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Definitions:

Positive Outcome

An event or result that is beneficial, favorable, or desirable.

Inherited Traits

Characteristics or features passed down from parents to offspring through genes.

Statistical Tests

Procedures in statistics used to determine if there is a significant difference between groups or a significant relationship between variables.

Scholarly Writing

A form of writing characterised by a clear focus on rigorous research, formal tone, objectivity, and precise references, often used in academic publications.