Economic theory suggests that a natural monopoly should be:

Question

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Regulating a natural monopoly allows it to take advantage of economies of scale while still preventing it from controlling the market and charging excessive prices. Eliminating a natural monopoly could result in higher costs for consumers and decreased efficiency in the industry. Leaving it alone to operate with excess capacity may lead to inefficient use of resources, and taking it over by the government may lead to inefficiency due to lack of competition.

Economic Theory Suggests That a Natural Monopoly Should Be