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Cerrena [4.2K]
2 years ago
15

One problem with government operation of monopolies is that?

Business
1 answer:
Nataly [62]2 years ago
6 0

One problem with government operation of monopolies is that the government typically has little incentive to reduce costs.

<h3>What is a monopoly?</h3>

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. The demand curve is downward sloping. A monopoly sets the price for its goods and services.

An example of a monopoly is a utility company

Here is the complete question:

One problem with government operation of monopolies is that a. a benevolent government is likely to be interested in generating profits for political gain. b. the government typically has little incentive to reduce costs. C. a government-regulated outcome will increase the profitability of the monopoly. d. monopolies typically have rising average costs.

To learn more about monopolies, please check: brainly.com/question/10441375

#SPJ1

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-D

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3 0
3 years ago
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