If a Natural Monopoly Increases the Quantity of Output It

question 8

Multiple Choice

If a natural monopoly increases the quantity of output it produces:

• A)its average costs will decrease.
• B)its average costs will increase.
• C)it will have to increase the price that it charges.
• D)its profits will increase.

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Definitions:

Response Cost

A behavior modification technique that involves the loss of a reward or privilege following undesired behaviors to decrease their occurrence.

Timeout

A form of behavioral modification that involves temporarily removing an individual from an environment where undesirable behavior has occurred, to decrease the likelihood of that behavior reoccurring.

Effectiveness

The degree to which something achieves a desired or intended result or outcome.

Punishment

A consequence applied with the intent of reducing the occurrence of an undesirable behavior.