Company A is one of several firms providing cab service in a city. Company B is the only supplier of natural gas into the city because economies of scale make it more efficient to have one rather than several suppliers. Based on this information:
A) neither Company A nor B would be regulated.
B) Companies A and B could be regulated because they are both natural monopolies.
C) Company A could be regulated because it is a natural monopoly, and Company B could be regulated because of the public interest in what it does.
D) Company A could be regulated because of the public interest in what it does, and Company B could be regulated because it is a natural monopoly.
Correct Answer:
Verified
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