Asked by
Zhane Dennie
on Nov 16, 2024
Verified
In a natural monopoly,
A) society would be better off if antitrust laws were used to create many different firms in the market.
B) the marginal cost curve is positively sloped.
C) if the government requires marginal cost pricing, it will likely have to subsidize the firm.
D) the marginal revenue curve is horizontal.
Natural Monopoly
A scenario in the marketplace where only one company can offer a product or service more affordably than any would-be rival, frequently because of the cost advantages associated with large-scale operations.
Marginal Cost
The change in total cost that arises when the quantity produced changes by one unit; essentially the cost of producing one more unit of a good.
- Comprehend the principles of marginal cost, average cost, and fixed costs within monopolistic and natural monopolistic environments.
- Assess the contribution and repercussions of antitrust regulations and governmental oversight on the dominance of monopolies and the competitiveness of markets.
Verified Answer
MS
Learning Objectives
- Comprehend the principles of marginal cost, average cost, and fixed costs within monopolistic and natural monopolistic environments.
- Assess the contribution and repercussions of antitrust regulations and governmental oversight on the dominance of monopolies and the competitiveness of markets.