Chapter 14 Test yourself questions.docx - Chapter 14 Test...

Chapter 14 Test yourself questions
Why is an electric company in a city often considered to be a natural monopoly?
What would happen if two competing electric companies were established? How
about telephone companies? How can changes in technology affect your
answer?
3. In some regulated industries, regulatory agencies prevented prices from
falling, and as a result many firms opened for business in those industries. In
your opinion, is this kind of regulation competitive or anticompetitive? Is it a
good idea or a bad one?