Question

One argument for having the government regulate natural monopolies is that without regulation, ________.

Answer 1

Government regulation of natural monopolies is necessary to prevent high prices and restricted output that would harm consumers.

Step-by-step explanation:

One argument for having the government regulate natural monopolies is that without regulation, consumers would suffer from high prices and restricted output. In a natural monopoly, market competition is unlikely to occur, allowing the unregulated monopoly to raise prices and reduce output without any constraints. By implementing government regulation, price and/or output can be controlled to protect the interests of consumers.