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Public utilities
________ are monopolies that are owned or regulated by the government.
downward sloping
Any company that faces a(n) ________ demand curve has some pricing control and hence some market power.
Monopolies
________ have also been linked to other types of distortions.
natural monopoly
A(n) ________ has a long- run average cost curve that slopes downward throughout the spectrum of market demand due to economies of scale.
Market power
________ refers to a company's capacity to raise prices without losing all of its customers to competitors.
Social regulation
government regulations aimed at improving health and safety
Economic regulation
government regulation of natural monopoly, where, because of economies of scale, the average production cost is lowest when a single firm supplies the market
Antitrust policy
government regulation aimed at preventing monopoly and fostering competition in markets where competition is desirable
Capture theory of regulation
producers’ political power and strong stake in the regulatory outcome leading them, in effect, to “capture” the regulating agency and prevail on it to serve producer interests
