Which of the Following Is the Best Explanation of Why

Multiple Choice

Which of the following is the best explanation of why a lack of information is a problem when the government wants to impose price regulation on a monopolist?

A) the government does not have information about which firms are monopolies.
B) firms that are monopolies do not have information about their level of profit or about potential competition.
C) consumers do not have information about which firms are competitive and which firms are monopolies.
D) regulators do not have information about the demand and marginal costs of the firms that they regulate.