How does the government regulate natural monopolies?

1 answer:

5 0

The Government regulate natural monopolies by A.) ensuring and overseeing one supplier, because a natural monopoly occurs when in an industry the fixed costs are too higher, so is very difficult that more than one business start activities in that industry, for that reason only can exist one competitor or one supplier, as an example of that are the public utilities as water or electricity.

Moreover, due to in the natural monopolies don't exist competitors in the same industry, the suppliers in those monopolies could abuse of their advantage and their market position by establishing higher costs to customers, so with the purpose to prevent that possible unjust actions, the Government regulate the natural monopolies by ensuring and supervising constantly to the only supplier of an specific industry.

You might be interested in

After the Revolution, the concept of the "republican mother" suggested that women would be responsible for raising their childre

san4es73 [151]

Answer:

The answer is:

A) women would be responsible for raising their children, especially their sons, to be virtuous citizens of the young republic

Explanation: This 18th century Republican Motherhood idea came from:

Pre-Revolutionary ministers who preached the idea that a republic could only succeed if its citizens were virtuous and educated,

" If the republic were to succeed, women must be schooled in virtue so they could teach their children." 

For these reasons female academies were founded.

3 0

2 years ago

Read 2 more answers

There is some controversy among historians about the Texans’ decision to stay and defend the Alamo. According to your lectures,

lisov135 [29]

Answer:

In the beginning, the Texans felt they could win the battle. However, as time wore on and the Mexican army increased and no reinforcements arrived, the Texans made a vow to fight until the bitter end to honor their belief that Texas should be independent from Mexican rule. They felt they were defending Texas and the Texan way of life and decided to stand up for their beliefs rather than run

Explanation:

4 0

3 years ago

HELPPP 40pts

erik [133]

Answer:

Dissenters

Explanation:

The term dissenters was widely used in 17th and 18th centuries. Generally, these dissenters were only a group of people that opposed the states' intervention to personal religious matters. (At that time, England wanted the church to be heavily involved in all political decisions).

But, many church officials at that time blatantly categorized these dissenters as someone who oppose the church and Christianity as a whole to diminish public support for them.

5 0

2 years ago

What caused the French and Indian War and how did it affect North America

hodyreva [135]

Answer:

of cours

Explanation:

5 0

3 years ago

National water act 1998

mariarad [96]

Answer:to provide for fundamental reform of the law relating to water resources; to repeal certain laws; and. to provide for matters connected therewith.

Explanation:

8 0

2 years ago