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:

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Price-Earnings Ratio

A financial measurement for equities determined by dividing the share's market price by its earnings per share.

Market Price

The immediate price point at which assets or services can be exchanged in the market.

Common Stock

A type of stock representing ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.