When Economies of Scale Are Important, Imposing Competition by Splitting

Multiple Choice

When economies of scale are important, imposing competition by splitting a monopolistic firm into many rival units will

A) lead to an increase in the per-unit cost of production in the industry.
B) not affect per-unit costs but will affect demand conditions.
C) generally increase the social efficiency of production.
D) cause the industry demand curve to increase (shift to the right) .