A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2017 · Q181 Mark
Which circumstance is not likely to represent a strong case for an industry to be nationalised?
AIn the private sector, the industry would cause significant inequalities of supply between different areas of the country.
BThe industry would allow firms outside of the industry to enter easily.
CThe industry would be unprofitable as a private enterprise but generates large benefits for the rest of society.
DThe industry would experience such economies of scale that it can support only one firm.
✓ Correct answer
B: The industry would allow firms outside of the industry to enter easily.
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