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If regulators break up a natural monopoly into many smaller firms, the cost of production ?

A. will rise

B. will fall

C. will remain the same

D. could either rise or fall depending on the elasticity of the monopolist’s supply curve

Related Questions on Monopoly Mcqs for Economics

Which of the following best defines price discrimination ?

A. charging different prices on the basis of race

B. charging different prices for goods with different costs of production

C. charging different prices based on cost-of-service differences

D. selling a certain product of given quality and cost per unit at different prices to different buyers

Public ownership of natural monopolies ?

A. tends to be inefficient.

B. usually lowers the cost of production dramatically.

C. creates synergies between the newly acquired firm and other government-owned companies.

D. does none of the things described in these answers