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:

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, person, or group, often in a way considered to be unfair.

Assailant

A person who physically attacks another, often causing harm or injury.

Transsexual

An individual who identifies with a gender different from their assigned sex at birth and who may undergo medical procedures to align their physical appearance with their gender identity.

Socially Constructed

A concept or perception that is created and developed by society, indicating that meanings, notions, or understandings are not inherent but shaped through social interactions and cultural norms.