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.

Question

Quizplus · Accepted Answer

It is possible that the best approach to monopolies is for the government to do nothing. This statement acknowledges the possibility that a monopolist may not engage in anticompetitive behavior and may not cause harm to consumers or the market. In such cases, government intervention may do more harm than good by reducing efficiency and innovation. It is important to evaluate each individual case and determine whether government intervention is necessary to protect competition and consumer welfare.

Which of the Following Statements Is Correct