A Major Drawback of Providing Subsidies to Private Companies That

question 1

Multiple Choice

A major drawback of providing subsidies to private companies that are natural monopolies is that

• A)Taxpayers dislike this use of their tax dollars.
• B)Private companies are less efficient than public companies.
• C)The companies have no incentive to limit costs.
• D)The companies will allow product quality to decline.

---

Definitions:

Probability Distribution

A numerical function outlining all conceivable outcomes and their associated chances for a random variable within a certain range.

Random Variable

A variable determined by the numerical results of chance phenomena.

Variance

A statistical measurement that represents the degree of spread or dispersion of a set of data points.

Random Variable

A variable that takes numerical forms based on the randomness of certain events.