If a Natural Monopoly Was Broken into Several Smaller Competing

question 45

Multiple Choice

If a natural monopoly was broken into several smaller competing firms,

• A)Consumers would lose because of less competition.
• B)Producers would be better off because they would have greater market share.
• C)Society would be worse off because the economies of scale would be destroyed.
• D)Workers would be worse off because fewer jobs would be available.

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Definitions:

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by its similarity to a prototype, potentially leading to errors in judgment.

Fundamental Attribution Error

The tendency for observers to underestimate situational influences and overestimate personal characteristics when explaining others' behaviors.

Cognitive Rehearsal

A psychological technique involving the repeated mental practice of a desired behavior or response to improve real-life performance.