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30 August, 10:27

Which describes a benefit from government regulation of a natural monopoly?

After flooding destroys homes in a small town, rent goes up.

Livy's gas utility bill does not go up during a natural gas shortage.

The corn syrup in Marcus's candy was cheaper to use than sugar.

Two lumber suppliers compete to offer the best price for paper mills.

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  1. 30 August, 10:32
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    The correct answer is Livy gas utility bill does not rise up during the shortage of the natural gas.

    Explanation:

    In the monopoly market, there is only one establishment control over the price of the products in the market. So, during the shortage of the product in the market, that establishment could increase or rise the price of the product and the customers would be forced to buy or conform as there is no other alternative or competitors in the market.

    Government regulation might create the price ceiling which determine the maximum price that a company will make for a product.

    Therefore, it describe that the Livy gas utility bill does not rise up during the shortage of the natural gas.
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