If a Regulator Forced a Natural Monopolist to Set P

question 104

Multiple Choice

If a regulator forced a natural monopolist to set P = MC

• A) the monopolist would earn economic profits.
• B) the monopolist would suffer economic losses.
• C) the monopolist would break even.
• D) the monopolist would earn monopolistic profits.

---

Definitions:

Nonunion Workers

Employees who are not members of a labor union and do not receive the benefits or protections associated with union membership.

Nonagricultural Labor Force

Workers employed in sectors other than agriculture, encompassing industry, services, and other areas of employment.

Union Membership

Involves individuals joining together in a labor union or trade union to collectively negotiate wages, hours, benefits, and other working conditions.

Right-To-Work Laws

Legislation that prohibits compulsory membership in a labor union as a condition of employment.