In a Natural Monopoly

question 6

Multiple Choice

In a natural monopoly,

• A)society would be better off if antitrust laws were used to create many different firms in the market.
• B)the marginal cost curve is positively sloped.
• C)if the government requires marginal cost pricing, it will likely have to subsidize the firm.
• D)the marginal revenue curve is horizontal.

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Money owed by a company to its creditors or suppliers for goods and services received but not yet paid for.

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The cost incurred by businesses or individuals due to taxes on their income.

Income Taxes Payable

The amount of income tax a company owes to the government but has not yet paid.

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The total amount of money that has been disbursed or paid out by an individual or organization.