Without Competition, There Is a Tendency for a Government-Run or Regulated

question 45

Multiple Choice

Without competition, there is a tendency for a government-run or regulated monopoly to:

• A) keep prices constant.
• B) become inefficient by passing higher costs on to consumers.
• C) find ways to decrease costs so as to increase profits.
• D) become a natural monopoly.

---

Definitions:

Homemade Dividend

A strategy whereby investors sell a portion of their portfolio to create cash flow, mimicking the effect of dividend payments.

Dividend Per Share

The amount of dividend that a company pays out for each share of its stock over a specified period.