Question

In: Economics

Which of the following is not a condition that tends to facilitate natural monopolies? a. Economies...

Which of the following is not a condition that tends to facilitate natural monopolies?

a. Economies of scale.

b. High start-up costs.

c. Antitrust laws.

d. All of the above

Solutions

Expert Solution

The answer is (c) antitrust laws

Natural monopolies are craeted when the starting costs are high and it is better if one firm enjoys the economies of scale. Antitrust laws are laws against monopoly practices and they do not facilitate, but rather hinder the formation of natural monopoly and is thus the right option.


Related Solutions

1)Which of the following best describes the condition that leads to a natural monopoly? Group of...
1)Which of the following best describes the condition that leads to a natural monopoly? Group of answer choices a)A single firm controls an industry because there are very few customers in the industry. b)The government prohibits entry into an industry. c)The firm takes anti-competitive actions to keep other firms out. d)Economies of scale are large relative to quantity demanded in a market.
Explain the argument according to which only natural monopolies should not be opened to competition?
Explain the argument according to which only natural monopolies should not be opened to competition?
"A function of government is to regulate ""natural monopolies."" Explain what is a natural monopoly and...
"A function of government is to regulate ""natural monopolies."" Explain what is a natural monopoly and why it requires government regulation."
What is natural monopoly? Explain why governments tend to regulate the price charged by natural monopolies?
What is natural monopoly? Explain why governments tend to regulate the price charged by natural monopolies?
Explain the existence of natural monopolies such as regional electric companies. What are the benefits and...
Explain the existence of natural monopolies such as regional electric companies. What are the benefits and costs of allowing such firms to remain monopolies?
1. Three natural barriers to entry are control of resources, economies of scale, and licensing. economies...
1. Three natural barriers to entry are control of resources, economies of scale, and licensing. economies of scale, problems raising capital, and control of resources. control of resources, patents and copyright law, and licensing. control of resources, patents and copyright law, and economies of scale. problems raising capital, patents and copyright law, and licensing. 2. When customers face significant switching costs, the supply for the existing product becomes more inelastic. supply for the existing product is perfectly inelastic. demand for...
what is the necessary condition for natural selection to occur
what is the necessary condition for natural selection to occur
In Canada, what are the challenges facing government policymakers in dealing with natural monopolies? What are...
In Canada, what are the challenges facing government policymakers in dealing with natural monopolies? What are the governments possible solutions for natural monopoly? List 3 possible examples and explain
Which of the following describe a No-Ponzi scheme condition? (Check all that apply.) A condition that...
Which of the following describe a No-Ponzi scheme condition? (Check all that apply.) A condition that prevents continuous borrowing to pay interest without reimbursing principal An investment scheme created by Ponzi Transversality condition A condition for solvency A requirement that debt cannot grow without bounds Give an explanation to your answer/answers TOTAL [5 Marks] QUESTION TWO (2) What is another term for primary balance? Most important balance Overall balance Non-interest balance Operational balance Give an explanation to your answer/answers TOTAL...
8. Explain the three types of regulations on natural monopolies (price, profit, quantity) and their potential...
8. Explain the three types of regulations on natural monopolies (price, profit, quantity) and their potential dangers (how the natural monopoly may respond). Please answer with typed answer, not a screenshot of your handwritten notes. This is the second time I am posting this question. Thank you very much for your help!
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT