Which of the Following Is an Example of Government Regulation

question 129

Multiple Choice

Which of the following is an example of government regulation of a natural monopoly distorting incentives?

• A)A natural monopoly is held to average-cost pricing; therefore, it has little incentive to hold costs down.
• B)A natural monopoly is protected from competitors; therefore, it is rude to its customers.
• C)A natural monopoly is protected from competitors; therefore, it doesn't care much about the quality of the product it sells.
• D)a and c
• E)a, b, and c

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Definitions:

Genital Swelling

An increase in size or puffiness of the genital organs, which can be due to various causes including infection, inflammation, or sexual arousal.

Erogenous Zone

Any area of the body that is highly sensitive to touch and associated with sexual arousal.

Sexual Development

The process of physical, emotional, and psychological changes that occur as a person matures sexually, from infancy through adulthood.

Emotional Bonding

The development of a close, interpersonal relationship between individuals through various forms of emotional exchange and mutual care.