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What Would Be the Impact If the Government Forced the Break-Up

Question 26

Multiple Choice

What would be the impact if the government forced the break-up of a natural monopoly to promote greater competition in an industry?


A) The average cost of producing the good would increase.
B) Smaller firms would have a cost advantage over larger firms.
C) The average cost of producing the good would decrease.
D) The price paid by consumers would be unchanged.

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