A Local Government Prevents Any Firm from Competing with a Natural

question 93

Multiple Choice

A local government prevents any firm from competing with a natural monopoly firm. Those people who believe this is a wise policy action would likely say

• A)this is a desirable state of affairs since if competition is allowed, the natural monopoly firm will out compete all newcomers and in the end the newcomers will go out of business.
• B)the public doesn't want more than one company to produce certain goods that it buys.
• C)the first company that provides a certain good to the public should have the right to produce that good without competition from others.
• D)if competition is allowed, no firm in the industry will be able to earn profits.
• E)none of the above

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Definitions:

Democratizer Offensive Weapon

A tool or strategy used by businesses to make products, services, or technologies more accessible to a broader audience, challenging existing market norms.

Defibrillator Product

A medical device used to deliver a dose of electric current (shock) to the heart to treat life-threatening cardiac dysrhythmias.

Present Value

Today's value of a future money sum or cash flow sequence, calculated using a predetermined return rate.

Lifecycle

The series of stages that an entity—such as a product, project, or individual—goes through during its existence, from inception to termination or renewal.