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14 February, 11:22

Which describes a benefit from government regulation of a natural monopoly

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  1. 14 February, 11:27
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    Some ways to regulate monopolies are:

    - Average cost pricing

    - Implement price ceiling

    - Rate of return regulation

    - Tax or subsidy

    Though these are not the perfect solution but somehow limit the price to a much reasonable one. The antitrust law is critical in regulating natural monopoly. In worse cases, the government can break up monopolies through legal processes.
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