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Development Economics
» Water Economics »
Water and monopoly
» Water and monopoly - Practice Questions
Water and monopoly - Practice Questions
1. Which of the follow is NOT a possible reason for the presence of monopoly in the water industry?
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Competing methods for obtaining water are time consuming and expensive
Competing methods for obtaining water may involve high fixed costs
Competing methods for obtaining water are less time consuming and have relatively low fixed costs
2. When fixed costs in an industry are relatively high:
*
It is easier to have competition in the provision of a good or service
It is harder to have competition in the provision of a good or service
It may be easier or harder to have competition in the provision of a good, depending on variable costs
