Policymakers Are Discussing Various Proposals Regarding How to Deal with Natural

question 104

Multiple Choice

Policymakers are discussing various proposals regarding how to deal with natural monopolies.Transportation Minister Gaston wants to regulate natural monopolies by equating price with average total cost.Gaston contends that such a policy will ensure that monopolies make every effort to reduce costs.Finance Minister Chen wants the government to own natural monopolies.Chen argues that government-owned monopolies usually do a better job of holding down costs than privately owned monopolies.Which Minister's argument is correct

• A)Transportation Minister Gaston's argument
• B)Finance Minister Chen's argument
• C)both ministers' arguments
• D)neither minister's argument

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Definitions:

Subsidiary Ledger

A group of accounts that provide details supporting a general ledger control account.

Supplier

An entity that provides goods or services to another entity, typically within a supply chain.

Control Account

An account in the general ledger used to summarize the details of a subservient ledger.

Subsidiary Accounts

Detailed records that support and summarize information in a controlling account, often used for individual items or customers.