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What Is One Problem with Government Regulation of Monopolies

Question 164

Multiple Choice
What is one problem with government regulation of monopolies

What is one problem with government regulation of monopolies


A) A benevolent government is likely to be interested in generating profits for political gain.
B) Regulated industries typically have rising average costs.
C) The government typically has little incentive to reduce costs.
D) A government-regulated outcome will increase the profitability of the monopoly.

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