Setting a proper price is difficult in a nationalized industry because
A) costs will not be restricted by competitive pressures
B) the government will have difficulty purchasing resources
C) the government will have difficulty estimating demand for the product
D) there is a consumer bias against government-supplied products
E) government will not have access to relevant information

Question

Quizplus · Accepted Answer

In a nationalized industry, the absence of competitive pressures means that costs are not naturally kept in check, making it challenging to set a proper price.

Setting a Proper Price Is Difficult in a Nationalized Industry