The government can regulate monopolies through: Price capping – limiting price increases. Regulation of mergers. Breaking up monopolies.
What happens when you regulate a natural monopoly?
- Regulatory Options for Addressing Natural Monopoly A herbal monopoly will produce at the extent in which marginal revenue (MR) equals marginal fees (MC),
- and could then use the marketplace call for curve to decide the best rate to rate for this degree of production.
What is a herbal monopoly ?
- A herbal monopoly is a unmarried dealer in a marketplace in which common fees are lowering throughout the whole output variety as a end result of economies of scale.
- They regularly have very excessive constant fees and really low variable fees, just like the town water supply, and are specially crucial industries.
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