Changes in the rate charged by electric power companies are subject to government control because
A)the electric power companies are government enterprises.
B)consumer ignorance makes it impossible to know what rates are fair.
C)the electric power companies are monopolies of a service that is important to buyers.
D)cutthroat competition would probably occur if the government did not intervene.

Question

Quizplus · Accepted Answer

Electric power companies often hold a monopoly over the service they provide, meaning that they are the only option available to consumers in a particular area. Because the service is essential to buyers, the government steps in to regulate rates and prevent electric power companies from charging unfairly high prices. This is done to protect consumers from being taken advantage of by a monopolistic entity.

Changes in the Rate Charged by Electric Power Companies Are