The government attempts to set the price at marginal cost through the force of regulation, a natural monopoly firm will likely lose money and go out of business unless the government offers the firm an ongoing public subsidy.
<h3>
What is Government?</h3>
The governance structures that divide authority between the executive and legislative branches are referred to as the system of government. Governments are essential because they uphold law and order and civilization to function.
Governments may provide cash, tax rebates, or other forms of financial assistance to particular businesses or sectors of the economy. Subsidies are intended to help or support areas that are seen as being important to the nation's economy or infrastructure.
Producers utilize subsidies to boost their profits. These are used to lower the cost of necessities for people on low incomes.
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This is an example of prejudice. the repair station is not an equal-opportunity employer
Debt financing takes place when a company raises money by selling debt instruments to investors.
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What is debt financing?</h3>
Your information is incomplete. Therefore, an overview of debt financing will be given. Debt financing simply occurs when a firm sells fixed income products, like bonds, bills, or notes.
Debt financing is the opposite of equity financing. The main advantage of debt financing is that the business owner doesn't give up any control of the business.
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