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.

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Definitions:

Soft Drink Industry

An economic sector involved in manufacturing, distribution, and sales of non-alcoholic beverages, such as sodas, juices, and carbonated drinks.

Food Industry

The sector of the economy concerned with the production, processing, and distribution of food products.

Across Cultures Competency

The ability to understand, respect, and effectively interact with people from diverse cultural backgrounds.

Effective Performance

The degree to which tasks are completed successfully and goals are achieved efficiently and effectively.