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:

Subchapter S Election

A tax election made by small businesses to be taxed as a pass-through entity, avoiding double taxation.

Current Year

The present calendar or fiscal year in which business operations, transactions, or tax considerations are being referenced or conducted.

Form 2553

A tax form used by small businesses to elect to be treated as an S corporation for the purposes of federal taxation.

Taxable Income

The portion of income that is subject to taxation after all allowances, deductions, and exemptions are considered.