Regulation Can Reduce the Profits of a Natural Monopoly by Imposing

question 105

Multiple Choice

Regulation can reduce the profits of a natural monopoly by imposing a per-unit output tax (rather than directly regulating price) .Such a tax would cause the monopolist's
1) average total cost curve to shift upward;
2) marginal cost curve to shift upward;
3) demand curve to shift to the left.

• A)1 only
• B)2 only
• C)3 only
• D)1 and 2
• E)2 and 3

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Definitions:

Dizygotic

Pertaining to twins that develop from two different eggs fertilized by two different sperms, also known as fraternal twins.

Pluripotent

In development, a cell or group of cells that have not yet become fixed or determined as to what specific tissues they are going to become.

Totipotent

Describes cells with the capability to differentiate into any type of cell in an organism, including the development of a complete organism.

Differentiated

A state or process in which cells or tissues undergo a change from a less specialized form to a more specialized form, often acquiring distinct structural or functional features.