One government policy for dealing with natural monopoly is to:
A)impose a price floor to eliminate the deadweight loss.
B)impose a price ceiling to reduce economic profit.
C)break it up into smaller firms.
D)impose fines on the monopolist.

Question

Quizplus · Accepted Answer

Imposing a price ceiling can help reduce the economic profit of a natural monopoly by limiting the price they can charge, potentially making the service or product more affordable to consumers and reducing the monopolistic power of the firm.

One Government Policy for Dealing with Natural Monopoly Is To