When Breaking Up a Natural Monopoly Is Not Advisable

question 72

Multiple Choice

When breaking up a natural monopoly is not advisable

• A)it should be left alone
• B)government regulation should be used to set marginal revenue equal to marginal cost
• C)government regulation should be used to set price equal to marginal revenue
• D)government regulation should be used to set marginal cost equal to long-run average total cost.
• E)public ownership and operation may improve efficiency

---

Definitions:

Inexpensive

Having a low cost or price; not expensive.

Mathematical Model

A representation of a system, process, or relationship using mathematical concepts and language, often used to analyze or predict behavior.

Operations

The activities involved in the day-to-day running of a business that relate to the production and delivery of goods and services.

Experimental Runs

The execution of tests or trials in a controlled setting to gather data, test hypotheses, or validate theoretical models.