21. Uber's surge pricing allows prices to fluctuate with demand conditions, which ________ consumer surplus by ________ when rides are most highly valued.

a. decreases; decreasing quantity demanded

b. increases; increasing quantity demanded

c. increases; increasing quantity supplied

d. decreases; increasing quantity supplied

22. ________ might prevent an industry from transitioning from a natural monopoly to a more competitive market structure.

a. The development of close substitute products

b. Declining consumer demand

c. Expansion of international trade

d. Rapid technological innovation

23. The Federal Communications Commission required AT&T to charge the same rates on high and low-density long-distance routes, despite different costs of providing services along those routes. AT&T argued that such a policy was economically inefficient because it allowed Sprint, MCI, and its other competitors to ________.

a. compete via non-price competition

b. engage in cream-skimming

c. expand network capacity

d. offer lower prices

24. Which of the following would strengthen the case for net neutrality regulations?

a. a series of vertical mergers between large content providers and BIAS suppliers

b. low consumer costs of switching BIAS (Broadband internet) suppliers

c. robust competition among BIAS ((Broadband Internet)) suppliers

d. persistent network overcapacity