St. Philips College

ECON 101

Chapter 13

1)Output regulation for a natural monopolist

2. Which of the following is an example of government failure?

3. To maximize profit, a natural monopolist produces the level of output at which

4. The goal of antitrust laws is to

5. Which of the following markets has not been subject to substantial deregulation?

6. If profit regulation is used to control a natural monopolist, the monopolist is likely to

7. An industry in which one firm can achieve economies of scale over the entire range of market supply is a

8. The major aim of government regulation is to

9. The long-run average total cost curve of a natural monopolist

10. Prior to the deregulation of the railroad industry, there was little incentive to invest in new technology or equipment. This is an example of

11. Natural monopolies fail to minimize

12. The case for deregulation rests on the argument that

13. The best way to address a natural monopoly without dismantling the economies of scale is

14. Cross-subsidization occurs when

15. When market outcomes improve after government regulation is enforced,

16. An unregulated natural monopoly can lead to all of the following except

17. Which of the following industries was substantially deregulated over the last several decades?

18. When a firm experiences positive economic profits over the long run,

19. Deregulation of the airline industry has

20. Which of the following is a form of government intervention that is designed to correct market failures?

21. If a natural monopoly is forced to set a price consistent with price efficiency, it will

22. Which of the following can the government use to alter both firm behavior and industry structure?

23. The collapse of AT&T's natural monopoly in long-distance telephone service was caused by

24. A major drawback of providing subsidies to private companies that are natural monopolies is that