Author Question: What would be the impact if the government forced the breakup of a natural monopoly to promote ... (Read 19 times)

JMatthes · **on:** Jun 30, 2018

What would be the impact if the government forced the breakup of a natural monopoly to promote greater competition in an industry?
a. Smaller firms would have a cost advantage over larger firms.
b. The price paid by consumers would be unchanged.
c. The average cost of producing the good would increase.
d. The average cost of producing the good would decrease.

Question 2

Which of the following would result from a tariff?
a. An increase in government budget deficit
b. An increase in domestic production
c. A greater volume of international trade
d. Increased domestic consumption
e. Decrease in prices of the imported goods