« previous next »

Author Question: What is a natural monopoly? Why is government justified in regulating a natural ... (Read 88 times)

cdr_15

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
What is a natural monopoly? Why is government justified in regulating a natural monopoly?

Question 2

When quantities of two goods belong to the same indifference curve, which of the following is true?
 a. The combinations of the two goods along the indifference curve yield the same total utility.
  b. Prices of the two goods are equal.
  c. Marginal utilities of both goods are equal.
  d. The total utility of all combinations above the curve equal zero.


T4T

  • Sr. Member
  • ****
  • Posts: 348
Reply #1 on: Jun 30, 2018
Answer to Question 1

A natural monopoly is a monopoly that results from very extensive economies of scale. Government is justified in regulating a natural monopoly to ensure that the monopoly does not gouge consumers with unnecessarily high prices.

Answer to Question 2

a


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Oil and Natural Gas Production from More Wells in Smaller Areas Oil and Natural Gas Production from More Wells in Smaller Areas
Should we restore YellowstoneNationalPark, as our flagship National Park, to include the natural ... Should we restore YellowstoneNationalPark, as our flagship National Park, to include the natural ...
When a Tornado Strikes: Social Organization Following a Natural Disaster When a Tornado Strikes: Social Organization Following a Natural Disaster
Selected Natural Products Selected Natural Products
La Niña: The impact of natural cycles La Niña: The impact of natural cycles
The constitutional division of Powers Between the National Government and the States The constitutional division of Powers Between the National Government and the States
Video: EpiPen Animation (Part 1)

For a complete list of videos, visit our video library