In practice, placing a price control on a natural monopoly:
A)is easy and commonly practiced.
B)is difficult because of the lack of information.
C)always creates the same outcome as public ownership of the industry.
D)is never a good idea.

Question

Quizplus · Accepted Answer

Price controls on a natural monopoly are difficult to implement effectively due to the lack of information about the monopoly's cost structure and the optimal level of production and pricing.

In Practice, Placing a Price Control on a Natural Monopoly