A Natural Monopoly Can Purposely Increase Its Cost of Production

question 54

Multiple Choice

A natural monopoly can purposely increase its cost of production by

• A)Using its own unregulated subsidiary to inflate its cost.
• B)Substituting cheaper inputs.
• C)Keeping marginal costs low.
• D)Using government subsidies to offset losses.

---

Definitions:

Neo-Freudian

Pertaining to the theorists and psychologists who accepted the broad outlines of Freud's theory but modified and expanded upon it in various ways.

Phallic Stage

According to Freudian psychology, a period of psychosexual development during which a child's interest and conflict center around the genital area.

Social Status

The position or rank of a person or group within the social hierarchy, determined by various factors such as wealth, occupation, education, and family lineage.

Jury Deliberations

The process by which a jury discusses in private the findings of the court and decides by vote the verdict in a legal case.