If an Inefficient Public Monopoly Cannot Provide a Service at a Price

question 34

Multiple Choice

If an inefficient public monopoly cannot provide a service at a price that sufficient numbers of people are willing to pay:

• A)it can remain in operation by covering its losses with revenue from taxes.
• B)it must shut down and leave the industry in the long run.
• C)it should expand operations until demand is satisfied.
• D)it will seek out more efficiencies.

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Definitions:

Range

The difference between the highest and lowest values in a set.

Gain Contingency

A potential financial gain that may occur in the future, dependent on certain events or conditions being met.