contestada

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

Respuesta :

The answer to this question would be option C: setting price controls for multiple suppliers. This is what we call as price capping and this is how the government regulates natural monopolies. In price capping, the government sets a certain regulation or limit to the price or amount that they can charge to the commodity. Hope this helps.