Which of the Following Will Occur If a Natural Monopoly

question 187

Multiple Choice

Which of the following will occur if a natural monopoly is broken into two smaller firms?

• A)The price will drop.
• B)Industry output will increase.
• C)Production costs will increase.
• D)Industry output will decrease.

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Definitions:

Leather Jackets

Durable outerwear made from the skin of animals, primarily cows, known for its style, protection, and warmth.

Utility Function

It represents an individual's preferences over a set of goods and services, specifying the level of satisfaction or utility derived from different combinations of goods and services.

Cocoa

The dried and fully fermented fatty seed of Theobroma cacao, from which cocoa solids and cocoa butter are extracted.

Cheese

A dairy product made from curdled or cultured milk.