If a Restaurant Was a Natural Monopoly, Dividing the Restaurant

question 145

Multiple Choice

If a restaurant was a natural monopoly, dividing the restaurant equally into two separate restaurants would

• A)decrease marginal cost.
• B)raise average total cost.
• C)increase total revenue.
• D)make marginal revenue less elastic.

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Definitions:

EPS

Earnings Per Share; a company's profit divided by the outstanding shares of its common stock.

Fiscal Year

A one-year period used by governments and businesses for accounting and financial reporting purposes, which may not coincide with the calendar year.

Economic Decision Makers

Individuals or entities that make choices regarding the allocation of resources, investment, and production within an economy.

Economics

The social science concerned with the production, distribution, and consumption of goods and services.