Which of the Following Is Likely to Take Place If

question 5

Multiple Choice

Which of the following is likely to take place if regulators split a natural monopoly into two smaller firms?

• A) The number of firms in the market will increase but the market price will be unchanged.
• B) The output in the industry will increase.
• C) The cost of production in the industry will increase.
• D) The market demand curve will become flatter.
• E) The total industry profits will increase.

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Definitions:

Power Distance

The extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Group Development

The process through which a group evolves and progresses in terms of structure, interaction, and achieving collective goals.

Formalization

Formalization refers to the process of defining and instituting formal rules, procedures, and structures within an organization to standardize operations.

Coordination

The act of organizing or aligning activities, tasks, or individuals to operate efficiently towards a common goal.