To assuage the deadweight loss from a natural monopoly, governments could employ a price control.

Question

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Price controls can be implemented by governments to limit the profit of natural monopolies and reduce the deadweight loss. This can be done through setting a maximum price or through price regulation. However, it is important to note that price controls can have unintended consequences such as reduced quality or quantity of goods and services offered by the natural monopoly.

To Assuage the Deadweight Loss from a Natural Monopoly, Governments