Which of the Following Is the Best Explanation of Why

question 154

Multiple Choice

Which of the following is the best explanation of why a lack of information is a problem when the government wants to impose price regulation on a monopolist?

• A) the government does not have information about which firms are monopolies.
• B) firms that are monopolies do not have information about their level of profit or about potential competition.
• C) consumers do not have information about which firms are competitive and which firms are monopolies.
• D) regulators do not have information about the demand and marginal costs of the firms that they regulate.

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Definitions:

Nature

The inherent features, characteristics, or qualities of something, often contrasted with nurture, which refers to the influence of the environment and learning.

Nurture

The influence of environmental factors like education and care on the growth and development of an individual.

Intelligence

The ability to learn, comprehend, solve problems, and adjust to novel circumstances.

Biological Parents

The parents who are genetically related to a child, as opposed to adoptive parents or step-parents.