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Which of the Following Are Not Issues with Regulating Monopolies

Question 49

Multiple Choice

Which of the following are not issues with regulating monopolies such as public utility firms?


A) Natural monopolies tend to cheat and hide profits from authorities
B) Natural monopolies have no incentives to keep costs low
C) Natural monopolies overinvest or underinvest in fixed assets depending on rates
D) It takes time to recognize issues and adapt regulations for natural monopolies

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