Public Utilities, Due to Their Economies of Scale, Are Permitted

question 142

True/False

Public utilities, due to their economies of scale, are permitted by government to charge whatever price that they wish.

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Definitions:

Defense Contractor

A business organization that provides products or services to a military or national security department of a government.

Recession

A temporary economic slump, associated with a drop in business and manufacturing activities, commonly distinguished by a successive decline in GDP across two quarters.

Cyclical Unemployment

Cyclical unemployment is the component of overall unemployment that results from economic recessions or expansions, influenced by the business cycle.

Economy

An area or system in which goods and services are produced, distributed, and consumed by various agents, encompassing local to global scales.