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4 January, 11:56

Why do governments regulate natural monopolies?

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Answers (2)
  1. 4 January, 11:58
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    to prevent a monopoly from abusing its customers
  2. 4 January, 12:08
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    The government may wish to regulate monopolies to protect the interests of consumers. For example, monopolies have the market power to set prices higher than in competitive markets. The government can regulate monopolies through price capping, yardstick competition and preventing the growth of monopoly power.
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