Which of the Following Statements Is Not Correct

question 358

Multiple Choice

Which of the following statements is not correct?

• A)The government may use antitrust laws to prevent a merger if the government believes the merger will reduce competition and increase prices.
• B)By regulating a natural monopoly where price equals average total cost, the monopoly earns zero profits.
• C)An advantage of private ownership over public ownership is that private business owners tend to fire inefficient managers.
• D)The government should always intervene to improve monopoly inefficiency.

---

Definitions:

Enumerated Powers

Specific powers granted to Congress as outlined in Article 1, Section 8 of the U.S. Constitution.

Congress

Congress is the bicameral legislature of the federal government in the United States, consisting of two houses: the Senate and the House of Representatives.

Concurrent Powers

Powers that are shared by both the federal and state governments in the United States.

Supremacy Clause

A clause in the U.S. Constitution declaring that federal law takes precedence over state law when the two are in conflict.