A major drawback of providing subsidies to private companies that are natural monopolies is that
A) Taxpayers dislike this use of their tax dollars.
B) Private companies are less efficient than public companies.
C) The companies have no incentive to limit costs.
D) The companies will allow product quality to decline.
Correct Answer:
Verified
Q27: The long-run average total cost curve of
Q28: Market failure occurs in natural monopolies because
A)The
Q29: Marginal cost pricing means that a firm
Q30: An unregulated natural monopoly is most likely
Q31: If the government wants a natural monopolist
Q33: If a natural monopoly is forced to
Q34: For a natural monopoly,marginal cost
A)Intersects average total
Q35: Natural monopolies fail to minimize
A)Marginal cost.
B)Marginal revenue.
C)Average
Q36: If the government forces a natural monopoly
Q37: An unregulated natural monopoly can lead to
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