If a Natural Monopoly Is Broken Up into Many Smaller

question 218

Multiple Choice

If a natural monopoly is broken up into many smaller firms then

• A) the price will decrease.
• B) the average total costs of production will increase.
• C) efficiency will increase.
• D) None of the above because it is illegal to break up a natural monopoly into smaller firms.

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Definitions:

Annelids

A phylum of invertebrate worms characterized by their segmented bodies, including earthworms, leeches, and polychaetes.

Cnidarians

A phylum of aquatic invertebrates known for their distinctive body plan featuring a single, central cavity and stinging cells.

Coelom

A body cavity in certain animals, including humans, that is lined by an epithelial layer derived from mesoderm, providing space for the development of internal organs.

Bilateral Animals

Animals that possess bilateral symmetry, having a body plan in which the left and right sides mirror each other.