Which of the Following Statements Is (Are) TRUE

question 65

Multiple Choice

Which of the following statements is (are) TRUE?
I. If the government regulates the price of a natural monopoly such that price equals marginal cost, the natural monopolist may earn a negative profit.
II. Government regulation of natural monopolies is straightforward because regulators can precisely estimate the demand and cost conditions of regulated firms.
III. Government regulation based on production costs makes firms less likely to reduce costs if lower costs lead to lower regulated prices.

• A) I, II, and III
• B) II and III
• C) I and III
• D) I

Apply the concept of relative frequency to determine probabilities in real-world scenarios.

Describe and apply the concept of mutually exclusive events and their probability calculations.

Recognize and explain the concept of collectively exhaustive events.

Understand and apply the principles of probability assignment to outcomes and experiments.

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Definitions:

Recessive Genes

Genes that are expressed in offspring only when inherited from both parents, as opposed to dominant genes, which are expressed when inherited from just one parent.

Genetically Inherited Factors

Characteristics and traits passed from parents to offspring through their genes.

Conj

Short for "conjunction," it is a logical connector indicating that two statements, terms, or conditions must be true simultaneously.

Add

To combine two or more quantities or values to find their total.