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Which of the following statements is not correct?

(A) Private ownership is typically preferred to public ownership.
(B) The government may use antitrust laws to break up an existing company to improve competition.
(C) The government may break up a natural monopoly to lower the price charged to customers.
(D) Sometimes the best strategy is for the government to do nothing about monopoly inefficiency because the "fix" may be worse than the problem.

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Answer:

The correct answer is (C)

Explanation:

The government may wish to direct monopoly market to ensure the interests of buyers. For instance, imposing business models have the market capacity to set costs higher than in aggressive markets. It is the job of government to protect the right of the public. But the government cannot intervene in monopolistic or monopoly market it may do more harm than good. The government cannot break the natural monopoly to protect the customer right.

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