Which of the following statements is TRUE?
I. Government ownership is a potential solution to the natural monopoly problem but it stifles innovation.
II. Regulated monopolies have little incentive to reduce costs, as they simply pass the higher costs on to consumers.
III. Government ownership of utilities worked well for several decades.
A) I only
B) II only
C) I and II only
D) I, II, and III

Question

Quizplus · Accepted Answer

Government ownership can stifle innovation due to lack of competition (I), regulated monopolies may pass costs to consumers due to lack of competition (II), and government ownership of utilities has historically been effective in some regions (III).

Which of the Following Statements Is TRUE