The government oversight and management of monopolies
A) is illegal in most cases.
B) never increases efficiency.
C) always increases efficiency.
D) is problematic because government agencies do not care about deadweight loss.
E) is problematic because there are no incentives to keep costs in check.

Question

Quizplus · Accepted Answer

Government oversight and management of monopolies can be problematic because, unlike in competitive markets, there is less incentive for monopolies to keep costs low and operate efficiently. This is because monopolies, by definition, face little to no competition, and when these are managed or overseen by government entities, the lack of competitive pressure can lead to inefficiencies, as there is no direct market force requiring them to minimize costs or innovate.

The Government Oversight and Management of Monopolies