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:

Solomon

A biblical figure known for his wisdom, wealth, and building projects, traditionally recognized as the third king of Israel.

Bildungsroman

A genre of novel that focuses on the psychological and moral growth of its main character from youth to adulthood, emphasizing character development and self-discovery.

Nihilism

A philosophical doctrine that suggests the lack of belief in one or more reputedly meaningful aspects of life.

Camus

Albert Camus, a 20th-century French philosopher and author known for his existential and absurdist themes, notably in works like "The Stranger" and "The Myth of Sisyphus."