In the Majority of Cases Where There Is a Natural

question 387

Multiple Choice

In the majority of cases where there is a natural monopoly in the United States, the government usually deals with the problem

• A)by splitting the natural monopoly into smaller companies.
• B)through regulation.
• C)by turning the natural monopoly into a public enterprise.
• D)by doing nothing.

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Definitions:

Consumer Surplus

The consumer surplus is the gap between what consumers are ready and capable of paying for a good or service and what they actually spend on it.

Marginal Utility

The augmented satisfaction or value someone derives from the consumption of an extra unit of a good or service.

Consumer Surplus

Consumer surplus represents the discrepancy between the total price consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.