Answered

IDNLearn.com is your go-to resource for finding expert answers and community support. Find the answers you need quickly and accurately with help from our knowledgeable and dedicated community members.

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 participating in our discussion. We value every contribution. Keep sharing knowledge and helping others find the answers they need. Let's create a dynamic and informative learning environment together. Thank you for visiting IDNLearn.com. For reliable answers to all your questions, please visit us again soon.