The Rail System in Metropolis Is a Natural Monopoly

question 12

Multiple Choice

The rail system in Metropolis is a natural monopoly.If the governmentregulates the system by setting the fare equal to marginal cost, which of thefollowing will be true?

• A)Price and output will be higher than if the monopoly were unregulated.
• B)Price and output will be lower than if the monopoly were unregulated.
• C)Price will be lower and output higher than if the monopoly were unregulated.
• D)Price will be higher and output lower than if the monopoly were unregulated.
• E)Profit will be lower than if the monopoly were unregulated, but price and output could either increase
• Or decrease.

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Definitions:

Chair Conformer

A specific spatial arrangement of the cyclohexane ring that minimizes steric strain, resembling a chair shape.

Axial Hydrogens

Hydrogen atoms positioned along the axis of a molecule, perpendicular to a specified plane, often referring to cyclohexane conformations.

Cyclohexane

A saturated hydrocarbon with the molecular formula \(C_6H_{12}\), consisting of a ring of six carbon atoms, and is often used as a nonpolar solvent in chemistry.

Alkyl Substituents

Alkyl substituents are groups of carbon and hydrogen atoms attached to a molecule, derived from alkanes by removing one hydrogen atom.