For a Long While, Electricity Producers Were Thought to Be

question 139

Multiple Choice

For a long while, electricity producers were thought to be a classic example of a natural monopoly. People held this view because

• A)the average cost of producing units of electricity by one producer in a specific region was lower than if the same quantity were produced by two or more producers in the same region.
• B)the average cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more produced in the same region.
• C)the marginal cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more producers in the same region.
• D)electricity is a special non-excludable good that could never be sold in a competitive market.

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Definitions:

Social Movements

Organized collective activities that aim to bring about or resist change in society or social norms.

Deviant

Behavior that deviates from societal or cultural norms and is often subject to negative sanction.

Tobacco Use

The act of smoking or ingesting tobacco products, which include cigarettes, cigars, pipe tobacco, and chewing tobacco, often associated with health risks.

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The immediate physical and social setting in which people live or in which something happens or develops, including culture, economy, and societal norms.