Arrows' Impossibility Theorem: a. illustrates of voting in a democratic regime b. shows that the flaws in the majority voting rule by highlighting how rationally inconsistent preferences can result c. shows how voting is essential to achieve consensus on economic decisions d. shows how the majority-voting rule achieves Pareto efficiency 14. Natural monopolies can only exist in an industry characterised by: a. increasing returns to scale b. decreasing returns to scale c. diseconomies of scale d. inefficiency of state owned enterprises that need government bailouts 15. The social costs of monopoly: a. can be analysed in terms of how Pareto inefficiency affects poverty and taxation b. are illustrated by the prevalence of x-efficiency c. are seen by the fact that monopolistic firms are definitely in a better position to achieve technological advancements than their perfectly competitive counterparts. d. are evident through its overpricing and underproduction leading to loss of welfare