With a Natural Monopoly

question 89

Multiple Choice

With a natural monopoly,

• A) regulation can take the form of average cost pricing to allow coverage of costs.
• B) regulation takes the form of breaking the company into several competing firms.
• C) regulation takes the form of forcing the company out of business.
• D) regulation takes the form of forcing competition from new firms.
• E) no regulation is necessary because it is a natural monopoly.

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