Using Antitrust Law to Split Up an Unregulated Natural Monopoly

question 72

Multiple Choice

Using antitrust law to split up an unregulated natural monopoly into several competing firms:

• A) would reduce product price.
• B) would increase product price.
• C) might either increase product price or reduce product price.
• D) will reduce average total cost.

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Definitions:

Portuguese

Relating to Portugal or its people, language, or culture.

Feitorias

Portuguese trade posts or forts established primarily along the coasts of Africa and Asia for the purposes of trade, exploration, and colonial expansion.

Navigational Technology

Tools and systems used to determine the position and course of ships, aircraft, and other vehicles, increasingly based on GPS and other advanced technologies.

Portuguese

Refers to people from Portugal or of Portuguese descent, as well as the language spoken in Portugal and some regions of Africa, Asia, and South America.