In the majority of cases where there is a natural monopoly in the United States, the government usually deals with the problem
A)by splitting the natural monopoly into smaller companies.
B)through regulation.
C)by turning the natural monopoly into a public enterprise.
D)by doing nothing.

Question

Quizplus · Accepted Answer

The most common solution to deal with a natural monopoly in the United States is through regulation. The government sets up regulatory bodies to control prices, limit profits, and monitor the company's behavior to ensure that it is not engaging in anti-competitive practices. Splitting the natural monopoly into smaller companies or turning it into a public enterprise are less common options, and doing nothing would allow the natural monopoly to continue harming consumers by charging higher prices with little accountability.

In the Majority of Cases Where There Is a Natural