Which of the Following Statements Is Not Correct

question 74

Multiple Choice

Which of the following statements is not correct?

• A)The government may use antitrust laws to break up an existing company to improve competition.
• B)The government may break up a natural monopoly to lower the price charged to customers.
• C)Economists usually prefer private ownership to public ownership of natural monopolies.
• D)Sometimes the best strategy is for the government to do nothing about monopoly inefficiency because the "fix" may be worse than the problem.

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Definitions:

Financial Instrument

A legal document representing an ownership position in a corporation, a creditor relationship with a governmental body or a corporation, or rights to ownership as represented by an option.

Private Offerings

Securities offerings that are not made to the general public but are marketed privately to a limited number of investors.

Registration Process

The procedure of formally recording or enrolling a person, company, or asset with a specified authority or system.

Securities Regulation

The set of laws and regulations that govern how companies can issue and sell stocks, bonds, and other securities to the public.