Explain how and why governments may want to regulate the price setting of a natural monopoly.

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02-09-2017
Business

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Explain how and why governments may want to regulate the price setting of a natural monopoly.

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SeoJoon15 SeoJoon15 · Answer 1 · 2017-09-13T05:15:25+02:00

SeoJoon15 SeoJoon15

13-09-2017

The reason why government may want to regulate the price setting of natural monopoly because they are a high scale of economy and because of that, competition is not encouraged They have the power to have prices to be set as high in market compared to the market who are referred to be more competitive.

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