Multiple Choice
The figure below shows revenue and cost curves of a natural monopoly firm.Figure 14.1
In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
-Why do the regulated companies oppose deregulation?
A) They would be deprived of an opportunity to compete with other firms.
B) They would be deprived of their rights to continue business.
C) They would be denied any kind of support from the government.
D) They would incur losses on account of increased competition.
E) They would become unpopular as they would no longer be controlled by the government.
Correct Answer:

Verified
Correct Answer:
Verified
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