For a Long While, Electricity Producers Were Thought to Be

question 139

Multiple Choice

For a long while, electricity producers were thought to be a classic example of a natural monopoly. People held this view because

• A)the average cost of producing units of electricity by one producer in a specific region was lower than if the same quantity were produced by two or more producers in the same region.
• B)the average cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more produced in the same region.
• C)the marginal cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more producers in the same region.
• D)electricity is a special non-excludable good that could never be sold in a competitive market.

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Definitions:

Minor Impact

A small or negligible effect or influence that something has on a situation, process, or condition.

Direct Approach

A straightforward method of communication or action where intentions and messages are conveyed clearly and openly.

Negative Message

Communication that conveys a refusal, denial, or unfavorable information to the recipient.

Respectful Close

A polite and considerate way to end a communication, ensuring the recipient feels valued and respected.