Which of the Following Statements Is Correct

question 175

Multiple Choice

Which of the following statements is correct?

• A)Public ownership is preferred to regulation in order to minimize the deadweight losses associated with natural monopolies.
• B)Antitrust laws are always the best way to limit monopoly power.
• C)It is possible that the best approach to monopolies is for the government to do nothing.
• D)Marginal-cost pricing requires a natural monopoly to earn zero economic profits.

---

Definitions:

Remembering

The cognitive process of recalling information or experiences stored in one's memory.

Mental Representation

A cognitive structure in the mind that represents objects, events, or concepts, serving as a mental model of the world.

Proposition

A declaration or claim that reflects a belief or viewpoint.

Visual Imagery

The mental representation and simulation of sensory experiences, particularly sight, in the absence of direct sensory input.