Without competition, there is a tendency for a government-run or regulated monopoly to:
A) keep prices constant.
B) become inefficient by passing higher costs on to consumers.
C) find ways to decrease costs so as to increase profits.
D) become a natural monopoly.

Question

Quizplus · Accepted Answer

Without competition, government-run or regulated monopolies can become inefficient as there is no pressure to keep prices low. As a result, they may pass on higher costs to consumers. Inefficiency can also lead to poor customer service and lower-quality products or services.

Without Competition, There Is a Tendency for a Government-Run or Regulated