QUESTION IMAGE
Question
why do governments regulate natural monopolies?
to allow additional producers to enter a market
to prevent a monopoly from abusing its customers
to help lower the costs of production or distribution
to provide companies with greater access to raw materials
Brief Explanations
Natural monopolies have significant market - power. Without regulation, they may charge high prices and provide poor service, thus abusing customers. Governments regulate them mainly to protect consumers.
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to prevent a monopoly from abusing its customers