Answered

For all your questions, big or small, IDNLearn.com has the answers you need. Join our interactive Q&A platform to receive prompt and accurate responses from experienced professionals in various fields.

Choose the two BEST ways to regulate a natural monopoly.
A)
The government should not get involved so that free market demand and
supply is established.
B)
The government should impose a price ceiling at fair returns price so that
the monopoly can cover costs.
The government should impose a tax on these big business entities to
decrease price and decrease their output.
D)
The government should impose a per unit tax on output so that consumers
will offset the costs for the supplier.
E)
The government should impose a price ceiling at the socially optimal price
and subsidize any loss to cover costs.

Sagot :

Remabernasjoaquinidn

Answer:

B and E

that's the two best ways to regulate a natural monopoly

Explanation:

HAVE A GOOD DAY

Ayfat23idn

Best way that can be followed in regulations of natural monopoly are;

B:The government should impose a price ceiling at fair returns price so that the monopoly can cover costs.

E: The government should impose a price ceiling at the socially optimal price and subsidize any loss to cover costs.

  • A natural monopoly can be regarded as a type of  monopoly that exist in industry whereby there is high infrastructural costs as well as other barriers that obscure the entry of relative  size of  supplier to the market.

  • In this market a single firm can supply the market even at lower cost even better that two or more other firms can do.

  • To regulate this kind of Monopoly, there should be price ceiling by the government at a very fair return price.

Learn more at:

https://brainly.com/question/2182889?referrer=searchResults

Thank you for using this platform to share and learn. Keep asking and answering. We appreciate every contribution you make. Thank you for choosing IDNLearn.com. We’re here to provide reliable answers, so please visit us again for more solutions.