Which of the Following Is a Major Shortcoming of Government

question 177

Multiple Choice

Which of the following is a major shortcoming of government regulation of business monopoly?

• A) The regulators often estimate production costs incorrectly and thus force firms into loss positions.
• B) The regulators often come to represent the interests of the established firms and use their power to limit competition.
• C) The regulators usually permit firms to make unusually high accounting profits.
• D) The regulators, acting in consumers' interests, often force prices so low that even with efficient production techniques the regulated firms lose money.

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Definitions:

Dreams

A series of thoughts, images, and sensations occurring in a person's mind during sleep.

Inability

The state of being unable to perform a task or action due to lack of skill, strength, or capacity.

REM Sleep

A sleep phase characterized by rapid eye movements, low muscle tone, and vivid dreaming, playing a key role in memory consolidation and emotional regulation.

Happiness

A state of well-being and contentment, often associated with positive emotions and life satisfaction.