Statement I.Two ways to prevent public utilities from charging outrageous prices are (1)government regulation and (2)government ownership.
Statement II.Large firms always behave badly.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question

Quizplus · Accepted Answer

Statement I is true as government regulation and government ownership are two effective ways to prevent public utilities from charging outrageous prices. However, statement II is false as it is a sweeping generalization that cannot be categorically applied to all large firms. Some large firms behave ethically and responsibly while some do not.