Question

Why was the electricity generated by the TVA cheaper than that generated by private power companies?

Workers for the TVA did not receive payment like private workers did.
The TVA operated mostly at a loss instead of trying to make a profit.
Private companies used older and less efficient equipment than the TVA.
The federal government did not levy any taxes on the TVA.

Answer 1

The primary reason why electricity generated by the TVA was cheaper than that generated by private power companies was because "The federal government did not levy any taxes on the TVA," since this would have been counterproductive.

Answer 2

The correct answer to this question would be alternative D) "The federal government did not levy any taxes on the TVA."

Being a Federally owned corporation, with the goal of producing electricity, it would be counterproductive to charge them taxes just like any other company, which would make their product more expensive and unable to compete with privately owned companies. For that reason, the Government didn't levy any taxes on them, which caused their electricity to be cheaper.