Question 6 • 2102320-Economics HONORS - Edgenuity Teacher
A government can regulate a natural monopoly by taking ownership and operating it, limiting the prices it charges, or requiring approval for certain decisions. These approaches let the government control the company’s conduct without relying on competing firms. Forcing a different product or splitting the company does not directly regulate its prices or decisions, and creating competitors may be impractical because a natural monopoly’s cost structure favors one provider.
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