Solved

Which of the Following Is a Major Shortcoming of Government

Question 137

Multiple Choice

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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents