What Is the Usual Rationale for Governments to Issue Monopoly-Promoting

question 14

Multiple Choice

What is the usual rationale for governments to issue monopoly-promoting licenses to firms providing services such as trash collection?

• A) lower risk for investors in the firms
• B) increased customer choice
• C) better-quality services
• D) economies of scale
• E) public safety

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Definitions:

Projects

Specific, planned activities with defined goals and objectives, undertaken to achieve a desired outcome.

CCA Class

Stands for Capital Cost Allowance Class, a categorization in tax systems for depreciation of assets for tax purposes.

Pre-tax Cost Reduction

A reduction in expenses that occurs before taxes have been applied, aimed at improving a company's profitability.

Tax Bracket

A range of income amounts that are taxed at a particular rate. Tax brackets result in higher income being taxed at higher rates.