Which of the Following Is a Possible Effect of Government

question 134

Multiple Choice

Which of the following is a possible effect of government regulation on a natural monopolist?

• A)The firm earns zero economic profit.
• B)The firm earns positive economic profit.
• C)The firm faces a horizontal demand curve.
• D)The firm incurs an economic loss.
• E)The firm faces an upward-sloping demand curve.

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