If a Restaurant Was a Natural Monopoly, Dividing the Restaurant

question 145

Multiple Choice

If a restaurant was a natural monopoly, dividing the restaurant equally into two separate restaurants would

• A)decrease marginal cost.
• B)raise average total cost.
• C)increase total revenue.
• D)make marginal revenue less elastic.

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Definitions:

Kohlberg's Theory

The psychological theory developed by Lawrence Kohlberg that suggests moral reasoning progresses through a series of developmental stages.

Personal Relationships

Interpersonal affiliations or associations formed between two or more individuals based on affection, trust, cooperation, or other social bonds.

Society

A structured community of people bound together by similar traditions, institutions, or nationality.

Kohlberg

Refers to Lawrence Kohlberg, a psychologist known for his theory of moral development, which suggests that moral reasoning develops in six stages.