The Rail System in Metropolis Is a Natural Monopoly

question 58

Multiple Choice

The rail system in Metropolis is a natural monopoly.Which of the following is likely to be true if the government regulates the system by setting a competitive price?

• A)Price and output will be higher in a regulated monopoly than in an unregulated monopoly.
• B)Price and output will be lower in a regulated monopoly than in an unregulated monopoly.
• C)Price will be lower and output will be higher in a regulated monopoly than in an unregulated monopoly.
• D)Price will be higher and output will be lower in a regulated monopoly than in an unregulated monopoly.
• E)Profit will be lower in a regulated monopoly than in an unregulated monopoly, but there will be no change in output.

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Definitions:

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or touched.

Schemas

Cognitive frameworks that help individuals organize and interpret information in the world around them.

Biopsychosocial Approach

A framework that attributes complex phenomena or illnesses to the interaction of biological, psychological, and social factors.

Cross-Sectional Study

A type of observational research that analyzes data from a population, or a representative subset, at a specific point in time.