Which of the following statements is not correct?
A)The government may use antitrust laws to prevent a merger if the government believes the merger will reduce competition and increase prices.
B)By regulating a natural monopoly where price equals average total cost, the monopoly earns zero profits.
C)An advantage of private ownership over public ownership is that private business owners tend to fire inefficient managers.
D)The government should always intervene to improve monopoly inefficiency.

Question

Quizplus · Accepted Answer

While the government may intervene to prevent anti-competitive behavior, it is not always necessary or appropriate for the government to intervene to improve monopoly inefficiency. In some cases, allowing the marketplace to determine the most efficient outcomes may be more effective.

Which of the Following Statements Is Not Correct