There is reason to regulate the prices of firms in industries that
A)are strategically important to the country.
B)are natural monopolies.
C)have potential external costs for the country as a whole.
D)are usually regulated by regulatory authorities.
E)produce public goods.

Question

Quizplus · Accepted Answer

Natural monopolies, due to their unique market structure where a single firm can supply a good or service at a lower cost than any potential competitor, often necessitate regulation to prevent abuse of monopoly power, such as price gouging or neglect of service quality.

There Is Reason to Regulate the Prices of Firms in Industries