Ask Question
20 January, 13:50

How does government regulate natural monopolies?

A. Ensuring and overseeing one supplier

B. Rationing consumption per supplier

C. Setting Price controls for multiple suppliers

D. Subsidizing suppliers during surplus

+1
Answers (1)
  1. 20 January, 14:02
    0
    I believe the correct answer would be option A. The government regulate natural monopolies by ensuring and overseeing one supplier. A natural monopoly would happen when a largest manufacturer of a certain industry would have a very big gap as compared to other competitors. These industries are being regulated so as to minimize monopolization and to maintain the competitive equality between industries. Monopolies are mainly being governed by antitrust laws on a national level and on an international level. The ways that the government is regulating are establishing average cost pricing, price ceiling, Rate of return regulations and taxation laws.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “How does government regulate natural monopolies? A. Ensuring and overseeing one supplier B. Rationing consumption per supplier C. Setting ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers