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.

---

Definitions:

Biological Dependence

A state in which an organism requires a substance to function normally, with cessation causing physical symptoms of withdrawal.

Psychological Dependence

A form of dependence characterized by a perceived need to use a substance for its mental effects, often leading to cravings and misuse.

Middle Adulthood

A stage of life typically characterized as occuring between the ages of 40 and 65, marked by personal, professional, and familial achievements and challenges.

Chronic Illnesses

Long-term health conditions that are persistent or otherwise have lasting effects on an individual's well-being, such as diabetes or heart disease.