The government allows ________ companies to operate as regulated monopolies.

Question

Quizplus · Accepted Answer

Utility companies, such as water and electricity providers, are often allowed to operate as regulated monopolies because they are considered natural monopolies - it is more efficient and cost-effective to have only one provider in an area rather than multiple competing providers duplicating infrastructure and services. The government regulates these companies to ensure they do not abuse their monopoly power by charging excessive prices or providing poor service.

The Government Allows ________ Companies to Operate as Regulated Monopolies