The Reason to Regulate Utilities Instead of Using Antitrust Laws

question 111

Multiple Choice

The reason to regulate utilities instead of using antitrust laws to promote competition is that a utility is usually a

• A)profit-maximizing monopoly.
• B)producer of externalities.
• C)revenue-maximizing monopoly.
• D)natural monopoly.

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Definitions:

Productive Activity

Actions or processes that result in the creation of goods or services which have economic value.

Manufacturing Sector

The segment of the economy that is engaged in the transformation of raw materials into finished products or goods.

Xenophobia

The fear and hatred of foreigners.

Cultural Relativism

A concept that suggests the values, knowledge, and behavior of people should be understood based on their own cultural context rather than judged against the criteria of another culture.