The Figure Below Shows Revenue and Cost Curves of a Natural

question 2

Multiple Choice

The figure below shows revenue and cost curves of a natural monopoly firm.Figure 14.1
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In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
-Which of the following is a possible reason for governments to regulate business operations?

• A)To increase monopoly profits
• B)To reduce the amount of information consumers have about a product
• C)To increase negative externalities
• D)To promote competitive behavior
• E)To decrease positive externalities

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Definitions:

Product Packaging

The materials and designs used to enclose or protect a product, as well as to enhance its appeal to consumers.

Less Material

A design or manufacturing approach focusing on reducing the amount of raw materials used to create a product, often to lower costs or minimize environmental impact.

Environmental Regulations

The laws designed to protect the natural environment against undue harm by individuals and organizations.

Lose Revenue

The process where a business experiences a decrease in income, typically due to lower sales or services rendered.