One Government Policy for Dealing with Natural Monopoly Is To

question 289

Multiple Choice

One government policy for dealing with natural monopoly is to:

• A)impose a price floor to eliminate the deadweight loss.
• B)impose a price ceiling to reduce economic profit.
• C)break it up into smaller firms.
• D)impose fines on the monopolist.

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Definitions:

Voluntary Association

An organization formed by individuals who voluntarily come together to pursue common interests or goals without seeking profit.

Co-Own Business

A business jointly owned by two or more individuals or entities, sharing the responsibilities, profits, and losses.

Book Value

The net value of a company's assets minus its liabilities, often used to assess its financial worth.

Market Value

The present-day selling or buying price of an asset or service in a market.