Most Natural Monopolies Are Regulated at Some Level by Government

question 21

Multiple Choice

Most natural monopolies are regulated at some level by government because:

• A)an unregulated natural monopolist would produce an inefficiently low level of output.
• B)an unregulated natural monopolist would produce only for government bureaucrats.
• C)an unregulated natural monopolist would charge an inefficiently low price in the market.
• D)an unregulated natural monopolist would charge an inefficiently high price in the market.
• E)an unregulated natural monopolist would produce a large quantity at a high price.

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Definitions:

Teller's Check

A check drawn by a bank on its own funds and signed by a teller, typically considered a secure form of payment.

Draft

A preliminary version of a piece of writing or design.

Transferable Check

A type of check that allows the original payee to endorse it to another party, transferring the right to cash or deposit.

Clearinghouse

An intermediary body that facilitates the exchange of payments, securities, or derivatives transactions among its members.