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Which of the Following Statements Is Correct

Question 175

Multiple Choice

Which of the following statements is correct?


A) Public ownership is preferred to regulation in order to minimize the deadweight losses associated with natural monopolies.
B) Antitrust laws are always the best way to limit monopoly power.
C) It is possible that the best approach to monopolies is for the government to do nothing.
D) Marginal-cost pricing requires a natural monopoly to earn zero economic profits.

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