Which of the Following Will Occur If a Natural Monopoly

question 187

Multiple Choice

Which of the following will occur if a natural monopoly is broken into two smaller firms?

• A)The price will drop.
• B)Industry output will increase.
• C)Production costs will increase.
• D)Industry output will decrease.

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Definitions:

Ethical Society

An organization or community dedicated to promoting ethical principles and fostering ethical behavior among its members and in society at large.

Government Role

The responsibilities and activities undertaken by a government, which may include legislation, administration, and the implementation of public policy.

Rawls

Philosopher known for his theory of justice as fairness, which argues for a societal structure that balances liberty and equality.

Rawlsian Fairness

A concept derived from John Rawls' theories, focusing on the principles of justice that ensure fairness in societies by prioritizing the rights and needs of the least advantaged.