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:

Instrumental Values

Values that act as means to an end, guiding behavior towards achieving certain goals or desirable states.

Terminal Values

Core life goals or end states of existence that an individual strives to achieve, such as happiness, personal fulfillment, and peace.

Values Conflict

A situation where two or more values that one holds are in opposition, leading to an ethical dilemma or discomfort.

Traditional Values

Core principles or standards of behavior passed down within a society that uphold its cultural and social norms.