Which of the following statements is TRUE? I. Government ownership is a potential solution to the natural monopoly problem. II. Regulated monopolies have little incentive to reduce costs, as they simply pass the higher costs on to consumers III. Government ownership of utilities worked well for several decades.
A) I only
B) II only
C) I and II only
D) I, II, and III.

Question

Quizplus · Accepted Answer

Government ownership can address natural monopoly issues by ensuring fair pricing and access. Regulated monopolies may lack cost-reduction incentives since they can pass costs to consumers. Historically, government ownership of utilities has been effective in some regions for extended periods.

Which of the Following Statements Is TRUE? I