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

---

Definitions:

Journal Article

A piece of writing published in a scholarly journal, usually peer-reviewed, that presents original research findings or reviews existing research in a specific field.

Sequencing

The arrangement of events, objects, or actions in a particular order or sequence.

Dependent Variable

The factor in a study that is anticipated to vary following alterations made to the independent variable.

Grammatical Errors

Mistakes made in the use of grammar, leading to incorrect structure or usage in written or spoken language.