Breaking Up a Company That Has a Natural Monopoly Would

question 12

Multiple Choice

Breaking up a company that has a natural monopoly would

• A) result in higher production costs.
• B) result in lower production costs.
• C) benefit society.
• D) result in lower prices for consumers.
• E) increase government tax revenue.

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Definitions:

Export

The sale of goods or services produced in one country to another country.

Worldwide Monopoly

A market structure in which a single company or entity has exclusive control over the production and sale of a product or service across the globe.

Tariff

A tax imposed by a government on imported or exported goods to regulate trade.

Quota

A trade limitation enforced by the government that restricts the quantity or financial value of products that may be exported or imported within a certain timeframe.