In the above figure, if this natural monopoly is not regulated the deadweight loss to society is

If the demand for labor ________, real wages rise and the amount of labor employed ________

A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases

Public policy responses to monopolies:

A. ease the effect of monopoly power on consumers. B. aim to break up existing monopolies. C. prevent new monopolies from forming. D. All of these statements are true.