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Splitting Up a the Natural Monopoly Held by a Public

Question 86

Multiple Choice

Splitting up a the natural monopoly held by a public utility that produces and provides electricity would


A) raise the total cost of production for all and force their profits to zero.
B) raise the average cost of production and force consumers to pay more.
C) evolve the structure of costs and demand to make competition less costly.
D) evolve the structure of costs and demand to make competition more likely.

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