If the Government Attempts to Break Up a Natural Monopoly

question 38

Multiple Choice

If the government attempts to break up a natural monopoly to enforce competition in an industry

• A)the average cost of producing the good will increase.
• B)the smallest firm will have a significant cost advantage over the larger,less efficient firms.
• C)the average cost of producing the good will decrease.
• D)the price paid by consumers will be expected to remain the same.