Which Statement Is False

question 224

Multiple Choice

Which statement is false?

• A)Natural monopolies can provide cheaper service as monopolies than could several competing firms.
• B)The two main justifications for monopoly are economies of scale and natural monopoly.
• C)Economies of scale and high capital requirements are significant barriers to entry.
• D)None of these statements are false.

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Definitions:

Compliance Costs

Expenses incurred by businesses and organizations in adhering to regulations, laws, guidelines, and standards, including the costs of implementing necessary changes.

Industrial Regulation

Involves government policies and rules aimed at regulating the activities and standards of specific industries to protect public interest.

Average Total Cost

The total cost of production divided by the quantity produced, representing the cost per unit of output.

Price-fixing

An illegal agreement among competitors to set prices at a certain level, rather than allowing them to be determined by free market forces.