Market Structures and Competition

Question 1

Which industries are examples of natural monopolies? Check all that apply.pipelinesrailway linessupermarketselectric companiessporting goods stores fixed-line telephone companies

Revolt · Accepted Answer

pipelines; railway lines; electric companies; fixed-line telephone companies

Question 2

What are some of the benefits of a natural monopoly? Check all that apply.

Revolt · Accepted Answer

It can focus on serving customers first and foremost.; It can improve a product without worrying about competition.; It can supply all the customers in a market with a good or service.

Question 3

What are some of the challenges caused by a natural monopoly? Check all that apply.It can raise prices without concern for customers.It is unable to serve all of the customers in a market.It lacks incentive to improve its good or service.It might not increase production if it cannot make a profit.It cannot be controlled by the government or other outside forces.

Revolt · Accepted Answer

It can raise prices without concern for customers.; It lacks incentive to improve its good or service.; It might not increase production if it cannot make a profit.

Question 4

How could a government regulate a natural monopoly? Check all that apply.

Revolt · Accepted Answer

It could buy out the company and operate it instead.; It could limit how much the company charges customers.; It could insist a company get approval before making certain decisions.

Question 5

Which form of government regulation does this passage primarily describe?

Revolt · Accepted Answer

placing price limitations on a producer

Market Structures and Competition Answers

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