Antitrust laws attempt to regulate market structure and the competitive behavior of firms.

a$.$ True

b$.$ False

$8.$ According to antitrust reformers, traditional antitrust theory ignores static economic efficiency.

a$.$ True

b$.$ False

$9.$ An industry where one producer can serve the entire market and also minimize costs of production is a $\_\_\_\_\_.$

a$.$ contestable market

b$.$ social entrepreneur

c$.$ natural monopoly

d$.$ theoretical ideal that does not occur in real$-$world market economies

$10.$ In the textbook example of a natural monopoly, what is associated with average costs falling as output rises?

a$.$ Constant marginal costs of production

b$.$ Rising marginal costs of production

c$.$ Rising average fixed costs of production

d$.$ Falling total costs of production

$11.$ What is the problem of an unregulated natural monopoly, in terms of economic efficiency? Its profit$-$maximizing price is $\_\_\_\_\_.$

a$.$ always below average cost

b$.$ equal to marginal revenue

c$.$ below marginal revenue

d$.$ above marginal cost

$13.$ In the real world $($compared to in theory$),$ which method of regulating a natural monopolist is more practical?

a$.$ Regulating its price

b$.$ Regulating its marginal revenue

c$.$ Regulating its demand

d$.$ Regulating its rate of return