Question

In: Economics

A government-owned monopoly is more likely to: 1. provide a greater quantity of output than a...

A government-owned monopoly is more likely to:

1. provide a greater quantity of output than a private one.

2. provide output at a lower price than a private one.

3. serve public interest than maximize profit.

4. All of these statements are true.

Solutions

Expert Solution

Answer- The correct option is 4 , i.e. All of these statements are true. A monopoly is a market structure where there is a sole seller of certain goods or services and that seller is the price maker and tries to maximise it’s profits. A government owned monopoly is where such minopoly is owned hy the government. One such example of government monopoly is LAW.

In case of government monopoly their main aim is to provide people with goods and services at a cost which will be less than the cost if such goods or services were provided by the private sector. Apart from such price setting the government will also undertake to sell more number of units than a private sector would do. If the government feels that private sector would do better then it will bring privatisation in that particular sector.

Apart from the above discussed matter the government will also try to focus on serving the customers better than with the aim to maximise profits.


Related Solutions

1. an increase in government spending will have a greater effect on aggregate output if ______....
1. an increase in government spending will have a greater effect on aggregate output if ______. Check all correct choices = the economy begins to trade = the resulting increase in the aggregate price level is smaller = households save less out of every additional dollar of disposable income = income is taxed at a higher rate 2. if the bank of canada's target for the overnight rate is 1.75% while the actual overnight rate is 1.70%, the appropiate monetary...
A monopoly is likely —- and —- than a comparable perfectly competirive form
A monopoly is likely —- and —- than a comparable perfectly competirive form
1) The equilibrium quantity in markets characterized by oligopoly is often A) higher than in monopoly...
1) The equilibrium quantity in markets characterized by oligopoly is often A) higher than in monopoly markets and lower than in perfectly Competitive markets B) lower than in monopoly markets and higher than in perfectly competitive markets 2) Which of the following goods is more likely to be traded in a Oligopoly market? -wireless service -electricity -tomaotes -tap water -chocolate bars -pizza
If the market equilibrium quantity is greater than the socially optimal quantity, one can infer that:...
If the market equilibrium quantity is greater than the socially optimal quantity, one can infer that: Select one: a. the private marginal benefits of the activity are less than the marginal social benefits. b. the production of this good has a positive externality. c. the production of this good has a negative externality. d. the private marginal costs for the activity are greater than the marginal social costs of the activity.
1. Which of the two taxes is likely to raise more money for the government and...
1. Which of the two taxes is likely to raise more money for the government and why? A. The cigarette tax, because cigarettes are more expensive than most other tobacco products. B. The cigarette tax, because people get addicted to cigarettes and are willing to pay the tax. C. The tobacco tax, since people will keep buying tobacco anyway and you can reap the tax rewards. D. The tobacco tax, because it covers a much broader variety of products to...
The government has a budget surplus if government outlays are greater than tax revenues. there is...
The government has a budget surplus if government outlays are greater than tax revenues. there is no national debt. a fiscal stimulus is being used to combat a recession. tax revenues are greater than outlays. the budget is balanced. When government outlays exceed tax receipts, the situation is called a budget surplus. with a negative balance. debt. with no balance. deficit. The national debt is the amount by which government tax receipts exceed expenditure in a given year. by which...
If the ROP is greater than the order quantity, explain how the ROP is implemented. Can...
If the ROP is greater than the order quantity, explain how the ROP is implemented. Can the ROP be more than twice the order quantity, and, if so, how is such a situation handled?
if the reorder point is greater than the order quantity, explain how the ROP is implemented....
if the reorder point is greater than the order quantity, explain how the ROP is implemented. Can the ROP be more than twice the order quantity? if so, how is such a situation handled?
1)) A $100 billion increase in government purchases has a greater effect on real GDP than...
1)) A $100 billion increase in government purchases has a greater effect on real GDP than a $100 billion reduction in net taxes because a some of the income consumers gain from the tax reduction will be saved rather than spent b some of the income consumers gain from the tax reduction will be spent on services rather than products c some of the income consumers gain from the tax reduction will be spent on goods made in foreign countries...
In a closed economy with a government, if Saving is greater than Investment then, Question 41...
In a closed economy with a government, if Saving is greater than Investment then, Question 41 options: consumpton must be less than saving saving must be less than consumption the government must be running a budget surplus the government must be running a budget deficit As the public becomes nervous about the viability of many borowers, the Fed can alleviated some of the panic by: Question 43 options: selling bonds to the public buying bonds from the public cuttng the...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT