Which of the Following Statements Is Correct

question 175

Multiple Choice

Which of the following statements is correct?

• A)Public ownership is preferred to regulation in order to minimize the deadweight losses associated with natural monopolies.
• B)Antitrust laws are always the best way to limit monopoly power.
• C)It is possible that the best approach to monopolies is for the government to do nothing.
• D)Marginal-cost pricing requires a natural monopoly to earn zero economic profits.

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Definitions:

Retaliated

Acted against someone in response to a perceived wrong; often involves punitive actions in a conflict or dispute.

Judicial Precedent

Legal cases that establish principles or rules that courts may follow in deciding subsequent cases with similar issues or facts.

Injunction

A judicial order that restrains a person from beginning or continuing an action threatening or invading the legal right of another individual.

Union Dues

Fees paid by members to labor unions for the support of union activities, including negotiations, legal representation, and other services.