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2 years ago

One problem with government operation of monopolies is that?

1 answer:

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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.

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3 years ago

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