Question

The monopoly Bright Light Inc. was restricted by government in order to raise competition and lower prices. Bright Light Inc. is operating in what type of system?
a. market system

b. planned system

c. mixed system

d. none of the above

Answer 1

It is a mixed system.

Answer 2

They are operating in a mixed system. Unlike a market system, which does not have oversight from governmental entities, and a planned system, which is totally overseen by the State, a mixed system allows for the best of both. Competition and the free market is allowed, but only to a certain point, after which there are regulations to allow competitors to stay in business.