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how could a government regulate a natural monopoly? check all that appl…

Question

how could a government regulate a natural monopoly? check all that apply. it could buy out the company and operate it instead. it could limit how much the company charges customers. it could force the company to offer a different good or service. it could insist a company get approval before making certain decisions. it could set up new companies to introduce competition into the market. it could split the company into smaller firms that serve different customers.

Explanation:

Brief Explanations
  1. Buying out and operating: Government can nationalize the natural - monopoly firm to control operations and prices.
  2. Limiting charges: Government can set price - ceilings to prevent the firm from over - charging consumers.
  3. Insisting on approval: Government can require the firm to get approval for major decisions to ensure public interest is protected. These are common regulatory methods for natural monopolies. Forcing a different good/service is not a typical regulatory approach for natural monopolies as they are often in a specific infrastructure - related business. Setting up new companies or splitting the firm may not be practical or efficient in natural monopoly cases due to high fixed costs and economies of scale.

Answer:

It could buy out the company and operate it instead.
It could limit how much the company charges customers.
It could insist a company get approval before making certain decisions.