Changes in the rate charged by electric power companies are subject to government control because

Question

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Electric power companies often exhibit economies of scale, meaning that as they produce more, the average cost of producing each unit of electricity decreases. This can lead to natural monopolies, where a single firm can supply the entire market at a lower cost than any combination of smaller firms could. To prevent these monopolies from charging excessively high prices due to lack of competition, government regulation is often necessary to control rates.

Changes in the Rate Charged by Electric Power Companies Are