When government owns a natural monopoly,it can:

Question

Quizplus · Accepted Answer

When government owns a natural monopoly, it can lose the incentive to be efficient, as it does not face competition in the market. It may also continue to operate at a loss for a long time, as it may not be motivated to cut costs and increase efficiencies. Government-owned monopolies may also make business decisions based on political pressures, rather than economic considerations. Therefore, all of the statements are true.

When Government Owns a Natural Monopoly,it Can