In Many Cases Throughout Canadian History,governments Have Sought to Control

question 10

Multiple Choice

In many cases throughout Canadian history,governments have sought to control the behaviour of oligopolistic firms through either ownership or regulation.Policymakers are now skeptical of such practices because
1) many innovations in products and production methods that have led to increases in living standards are attributable to firms in oligopolistic industries;
2) it became clear that oligopolistic industries can achieve both productive and allocative efficiency without government intervention;
3) the regulatory body often ends up protecting the firms from competition.

• A)1 only
• B)2 only
• C)3 only
• D)1 and 2
• E)1 and 3

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest in the company.

Net Working Capital

Networking capital represents a financial indicator that assesses the capacity of a business to settle its short-term debts using its short-term assets.

Capital Spending

Monies invested by an enterprise in obtaining or upgrading real assets, including estates, manufacturing facilities, or equipment.

Operating Cash Flow

The amount of cash generated by a company's regular business operations, indicating its ability to cover expenses, debt, and investments.