Asked by Jerry Simmons on Jul 21, 2024
Verified
The two alternative ways of promoting better outcomes when a natural monopoly exists are
A) subsidy and taxation.
B) public ownership and regulation.
C) pricing and incorporation.
D) breaking and merging.
Natural Monopoly
occurs when a single firm can supply a product or service to an entire market at a lower cost than could two or more firms, often due to high fixed or startup costs.
Public Ownership
The ownership of assets by the government or state, as opposed to private individuals or organizations.
Better Outcomes
Improvements in conditions or situations, often used in the context of healthcare or social services, indicating more favorable results.
- Gain insight into the rationale and objections involved in the oversight of natural monopolies.
- Comprehend the function of governmental bodies in overseeing natural monopolies.
Verified Answer
EM
Edith MendezJul 28, 2024
Final Answer :
B
Explanation :
Public ownership and regulation are two common methods for managing natural monopolies. Public ownership involves the government taking control of the monopoly, while regulation involves the government setting rules and standards for the monopoly to follow, ensuring fair prices and services for consumers.
Learning Objectives
- Gain insight into the rationale and objections involved in the oversight of natural monopolies.
- Comprehend the function of governmental bodies in overseeing natural monopolies.