If the OpenTable Website Was a Natural Monopoly,dividing the Business

question 118

Multiple Choice

If the OpenTable Website was a natural monopoly,dividing the business equally between two firms that each supplied the same number of online reservations would

• A)decrease marginal cost.
• B)raise average total cost.
• C)increase total revenue.
• D)make marginal revenue less elastic.

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Definitions:

Aggregate Demand

The total demand for all goods and services within a specific economy at a given overall price level and in a given time period.

Income Distribution

Refers to the way total personal income is distributed among individuals or households in an economy, affecting economic inequality.

Reservation Price Model

A model that defines the maximum price a consumer is willing to pay for a good or service.

Aggregate Demand

The aggregate need for all products and services in an economy, measured at a specific price level and during a particular time frame.