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3 years ago

Why is it in the best interest of the government to regulate natural monopolies?

Business

2 answers:

kap26 [50]3 years ago

7 0

Answer:

To keep costs to a minimum for consumers

Explanation:

Natural monopolies are market structures where fixed costs are high and variable costs and marginal costs are low, eg electricity distribution and public transport. Thus, state production or private production under government regulation becomes necessary to maintain minimum costs to consumers, since the unregulated natural monopoly will generate a smaller quantity and a higher price.

DedPeter [7]3 years ago

5 0

To keep costs to a minimum for consumers <span>is it in the best interest of the government to regulate natural monopolies
hope it helps</span>

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Answer:

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Explanation:

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