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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

User Alesch
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1 Answer

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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.
User Mapmath
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