Which of the following is a major shortcoming of government regulation of business monopoly?

a. The regulators often estimate production costs incorrectly and thus force firms into loss positions.
b. The regulators often come to represent the interests of the established firms and use their power to limit competition.
c. The regulators usually permit firms to make unusually high accounting profits.
d. The regulators, acting in consumers' interests, often force prices so low that even with efficient production techniques the regulated firms lose money.


B

Economics

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What will be an ideal response?

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According to the U.S. Treasury,

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Economics

Assume the economy is headed into a recession. Considering this, and recognizing that firms are slow to change the prices they charge for their products, are firms more or less likely to be able to pursue an effective markup pricing strategy in their

pursuit of positive economic profit? Why?

Economics

Answer the following statement(s) true (T) or false (F)

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Economics