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Which of the Following Statements Is Not Correct

Question 358

Multiple Choice

Which of the following statements is not correct?


A) The government may use antitrust laws to prevent a merger if the government believes the merger will reduce competition and increase prices.
B) By regulating a natural monopoly where price equals average total cost, the monopoly earns zero profits.
C) An advantage of private ownership over public ownership is that private business owners tend to fire inefficient managers.
D) The government should always intervene to improve monopoly inefficiency.

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