Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation? Turn the company into a public enterprise. Use antitrust laws to increase competition. Regulate the firm's pricing behavior. Do nothing at all.
Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies. Which of the following policy options might most effectively enable the government to achieve its objectives in this situation? Turn the company into a public enterprise. Use antitrust laws to increase competition. Regulate the firm's pricing behavior. Do nothing at all.
Chapter28: Antitrust And Regulation
Section: Chapter Questions
Problem 5E
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Suppose that a government that is skeptical of efforts to regulate prices charged by private companies is nevertheless concerned that an electric utility company is taking advantage of consumers with unfair pricing policies.
Which of the following policy options might most effectively enable the government to achieve its objectives in this situation?
Turn the company into a public enterprise.
Use antitrust laws to increase competition.
Regulate the firm's pricing behavior.
Do nothing at all.
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