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:

Sweat Gland

Glands located in the skin that produce sweat, a fluid that helps regulate body temperature through evaporation.

Sebaceous Gland

Glands located in the skin that secrete sebum, a lubricating oil, into hair follicles.

Eccrine Gland

Sweat glands that are found all over the body and help in thermoregulation by secreting sweat directly onto the surface of the skin.