The approach to natural monopolies in the United States is to

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The approach to natural monopolies in the United States is to give them franchises and subject them to regulation. This is done through granting them a government-approved franchise to operate and subjecting them to regulations which can help keep the prices reasonable and prevent them from exploiting their monopolistic power. Breaking them up into small competitive businesses or requiring them to merge with existing perfectly competitive business firms may not be practical due to high start-up costs and the natural advantages that the monopoly may have over potential competitors. Nationalizing them would involve the government taking complete control over the company, which is generally seen as an extreme measure and not favored in the United States. Leaving them alone could lead to exploitation of the consumer and potential inefficiencies.

The Approach to Natural Monopolies in the United States Is