Question

Public policy toward monopolies 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?

1. Regulate the firm's pricing behavior.
2. Use antitrust laws to increase competition.
3. Turn the company into a public enterprise.
4. Do nothing at all.

Answer 1

Turn the company into a public enterprise ( 3 )

Step-by-step explanation:

The most effective policy that would enable the government achieve its objectives of achieving fair pricing for consumers and eradicate unfair pricing policies is by Turning the private company into a publicly owned enterprise .

This way the government can have control of the pricing policies of the company.this kind of policy is mostly applicable to companies offering essential services with unfair pricing policies that way they will be forced to sell themselves into becoming a public enterprise by the government .

the government will do this to protect the interest of its citizens in general.

Answer 2

1. Turn the company into a public enterprise.

Step-by-step explanation:

The things which are necessary for any human being should always have the ownership of the government as it promotes balance in the economy and help prevent private firms charging way too much for the basic service.

In this question, we have an electric utility company, and electricity is the basic need for every individual, hence, the government should turn that company into a public company and take a hold of it in order to prevent the unfair charging to the customers.

Good luck buddy.

Thanks.