When consumers have no choice but to buy from one firm (local utility,etc. ):
A) they usually end up paying way too much for the good or service.
B) government regulation is usually used to protect consumers.
C) they will always get the good or service at the lowest price available.
D) None of these occur.

Question

Quizplus · Accepted Answer

Government regulation is usually used to protect consumers when they have no choice but to buy from one firm, as this can lead to a lack of competition and potential monopolistic behavior by the firm. The regulation helps to ensure that the firm does not take advantage of its position and provides fair prices and services to consumers. Option A and C are incorrect as the lack of competition could potentially lead to higher prices, and there is no guarantee that consumers will always get the lowest price available. Option D is incorrect as at least one of the options (government regulation) occurs in this scenario.

When Consumers Have No Choice but to Buy from One