Question

Which describes a benefit from government regulation of a natural monopoly

Answer 1

More than an answer this is an extra to write the possible answers of the question, so if someone knows please say:

A) after flooding destroys homes in a small town, rent goes up.

B) Livy's gas utility bill doesn't go up during a natural gas shirtage

C) the corn syrup in Marcu's candy was cheaper to use than sugar

D) two lumber suppliers compete to offer the best price for paper mills

Step-by-step explanation:

Answer 2

Some ways to regulate monopolies are:
- Average cost pricing
- Implement price ceiling
- Rate of return regulation
- Tax or subsidy
Though these are not the perfect solution but somehow limit the price to a much reasonable one. The antitrust law is critical in regulating natural monopoly. In worse cases, the government can break up monopolies through legal processes.