Question

Given below are two statements : Statement I: Changing competition in market place is the primary reason for govt involvement in business globally. Statement II: Increase in cost of production is the primary reason for govt in business globally.

In the light of the above statements, choose the most appropriate answer from the options given below :

Accepted Answer

C. Statement I is correct as governments intervene primarily to regulate changing competitive landscapes, prevent monopolies, and ensure fair competition. Statement II is incorrect as rising production costs are an internal business issue, not the main driver of global government policy.

Reasons for Government Involvement in Business

Explanation

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