Government often handles large natural monopolies such as water and power companies by __________.
A. shutting down these businesses because they are illegal
B. regulating the prices the monopoly charges its customers
C. forcing the monopoly to split into at least two competing companies
D. requiring at least one other water or power company to open in the area

Question

30-11-2017
Business

contestada

Government often handles large natural monopolies such as water and power companies by __________.
A. shutting down these businesses because they are illegal
B. regulating the prices the monopoly charges its customers
C. forcing the monopoly to split into at least two competing companies
D. requiring at least one other water or power company to open in the area

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deebikamadhivanan deebikamadhivanan · Answer 1 · 2022-05-03T16:14:59+02:00

The government frequently regulates the prices that huge natural monopolies, such as water and power providers, charge their users. So, option (A) is the correct answer.

Why does government handle large monopolies?

Monopolies inevitably deplete society's economic resources in a variety of ways. As a result, governments restrict monopolies in order to benefit society more than they would if the monopolies maximized their earnings.

Governments regulate monopolies by regulating their pricing, ensuring that the monopoly does not charge excessively high prices that reduce welfare.

Check out the below link to know more about monopolies;

https://brainly.com/question/16564093

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nasirmiles23 nasirmiles23 · Answer 2 · 2022-06-14T16:56:28+02:00

nasirmiles23 nasirmiles23

14-06-2022

Answer: The correct Ranswer is B

Explanation: Regulating the prices the monoply charges its custiomers

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