Which of the Following Is a Major Shortcoming of Government

Multiple Choice

Which of the following is a major shortcoming of government regulation of business monopoly?

A) The regulators often estimate production costs incorrectly and thus force firms into loss positions.
B) The regulators often come to represent the interests of the established firms and use their power to limit competition.
C) The regulators usually permit firms to make unusually high accounting profits.
D) The regulators, acting in consumers' interests, often force prices so low that even with efficient production techniques the regulated firms lose money.