Asked by Raney Sumpter on May 17, 2024
Verified
Statement I.Two ways to prevent public utilities from charging outrageous prices are (1) government regulation and (2) government ownership.
Statement II.Large firms always behave badly.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Government Regulation
Policies and rules established by government bodies to control and guide the activities of businesses and individuals within the society.
Government Ownership
Refers to assets and enterprises owned by the government or public authorities, intended for public benefit or strategic interests.
- Assess the function of the governmental bodies in overseeing monopoly practices and inhibiting undue price inflations.
Verified Answer
JH
Joshua HalonaMay 22, 2024
Final Answer :
A
Explanation :
Statement I is true as government regulation and government ownership are two effective ways to prevent public utilities from charging outrageous prices. However, statement II is false as it is a sweeping generalization that cannot be categorically applied to all large firms. Some large firms behave ethically and responsibly while some do not.
Learning Objectives
- Assess the function of the governmental bodies in overseeing monopoly practices and inhibiting undue price inflations.