If There Are Strong Economies of Scale and Scope, Then

question 134

Multiple Choice

If there are strong economies of scale and scope, then society

• A)will not be able to prevent overt collusion.
• B)will benefit from establishing a cartel.
• C)cannot benefit from regulation of a natural monopoly.
• D)will not be able to preserve free competition.

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Definitions:

Government Expenditures

Federal, state, and local government outlays for goods and services, including transfer payments.

Rational Expectations

The economic theory that when making decisions, individuals take into account all available information, including their understanding and predictions of the future.

Economic Well-being

The degree of prosperity, well-being, luxury items, and essential needs accessible to an individual, community, or society.

Economic Behaviorists

Scholars or economists who study the psychological, emotional, and cognitive factors influencing the economic decisions of individuals and institutions.