One problem with government operation of monopolies is that
a. a benevolent government is likely to be interested in generating profits for political gain.
b. monopolies typically have rising average costs.
c. the government typically has little incentive to reduce costs.
d. a government-regulated outcome will increase the profitability of the monopoly.
c
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The most important purpose of a market is to
A. bring buyers and sellers together so they can argue. B. bring buyers and sellers together so they can barter. C. increase the sellers' wealth. D. bring buyers and sellers together so they can trade.
If the market interest rate is 5 percent, the opportunity cost of $100 worth of present consumption
a. is $105 today b. is $105 next year c. is $5 today d. is $5 next year e. cannot be determined unless we know the consumer's rate of time preference
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