Which of the following is a possible benefit of the nationalization of a market?

Question

Which of the following is a possible benefit of the nationalization of a market? There is no longer a goal to maximize profit, which allows the market to produce an allocative efficient quantity and charge a lower price. Decreased competition will benefit the market in the form of a greater incentive to innovate and become more efficient. The introduction of Price-Cap Regulation will allow the firms time to reduce their costs in order to make a profit. The firms involved will set the regulations they follow, allowing those with the most knowledge to make the tough decisions.

Explanation / Answer

Which of the following is a possible benefit of the nationalization of a market?

Ans: There is no longer a goal to maximize profit, which allows the market to produce an allocative efficient quantity and charge a lower price.

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