Using antitrust law to split up an unregulated natural monopoly into several competing firms

A) would reduce product price.
B) would increase product price.
C) might either increase product price or reduce product price.
D) would reduce average total cost.

Question

Swadeep Chaturvedi · Accepted Answer

Final Answer : C, Explanation :  Splitting up a natural monopoly could either increase or decrease product prices depending on how the newly created competition affects market dynamics and costs. Natural monopolies often exist because they can serve the market more efficiently than multiple firms, so breaking them up could lead to higher costs and prices, or it could lead to innovation and lower prices.

Using antitrust law to split up an unregulated natural monopoly into several competing firms

A) would reduce product price.
B) would increase product price.
C) might either increase product price or reduce product price.
D) would reduce average total cost.

Definitions

Learning Objectives

Learning Objectives

Related questions

Using antitrust law to split up an unregulated natural monopoly into several competing firmsA) would reduce product price.B) would increase product price.C) might either increase product price or reduce product price.D) would reduce average total cost.

Definitions

Learning Objectives

Learning Objectives

Related questions

Using antitrust law to split up an unregulated natural monopoly into several competing firms

A) would reduce product price.
B) would increase product price.
C) might either increase product price or reduce product price.
D) would reduce average total cost.