Based on this graph, in most years there is a ______.

The slope at any point on an indifference curve equals the absolute price at which a consumer is willing to substitute one good for the other

a. True b. False Indicate whether the statement is true or false

If government officials break up a natural monopoly into four smaller firms, then

a. each firm will be unable to maximize profits due to increased competition. b. competition will force firms to produce surplus output, which drives up price. c. the average cost of production will increase. d. consumers will benefit from lower average total costs.