If There Are Strong Economies of Scale and Scope, Then

question 31

Multiple Choice

If there are strong economies of scale and scope, then society

• A)can benefit from regulation of a natural monopoly.
• B)can gain when more firms enter the market.
• C)can gain when regulators place a price floor on the market.
• D)should promote the expansion of federally run markets.

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Definitions:

Psychophysics

The branch of psychology that studies the relationships between physical stimuli and the sensations and perceptions they produce.

Psychological Sensation

The initial process of detecting and interpreting environmental stimuli through the senses.

Perception

The process of organizing, identifying, and interpreting sensory information to represent and understand the environment around us.

Selection Factor

A source of bias that may occur in research findings when participants are allowed to choose for themselves a certain treatment in a scientific study.