What is a natural monopoly? Why is government justified in regulating a natural monopoly?
A natural monopoly is a monopoly that results from very extensive economies of scale. Government is justified in regulating a natural monopoly to ensure that the monopoly does not gouge consumers with "unnecessarily" high prices.
Economics
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A socially optimal price:
A) maximizes consumer surplus and minimizes producer surplus. B) maximizes producer surplus and minimizes consumer surplus. C) maximizes total surplus. D) maximizes deadweight loss.
Economics
Price wars occur more often in monopolistic competition than in other market structures
a. True b. False
Economics