Question

When confronted with a natural monopoly that restricts output and charges monopoly prices, the two methods that government have for promoting better outcome are:

A: Public ownership and public regulation.
B: Sole proproetorship and public goods.
C: Antitruct law and horizontal mergers.
D: Creative destruction and laissez-faire.

Answer 1

I will go for this by rejecting the options, from the last to the first
.
D: Creative destruction and laissez-faire.

Laissez-faire would not help here, as it's the principle of non-involvement

C: Antitruct law and horizontal mergers.

Anti-trust law is good, but horizontal merger rather leads to monopoly!

B: Sole proprietorship and public goods.
-sole proprietorship can also be a monopoly, it means that the company belongs to one person

Which means that we're left with the answer A