The primary reason government chooses to regulate a natural monopoly is to

Question

Quizplus · Accepted Answer

The primary reason for regulating a natural monopoly is to control price and output. Natural monopolies, due to their unique position and the lack of competition, can set prices and outputs at levels that may not be in the best interest of consumers or the economy. Regulation helps ensure that the monopoly does not abuse its position by setting excessively high prices or restricting output.

The Primary Reason Government Chooses to Regulate a Natural Monopoly