One way to take advantage of economies of scale and to avoid the market power of a natural monopoly in the short run is through:
A) price control.
B) privatizing the monopoly.
C) breaking up the monopoly into several smaller companies.
D) penalty.

Question

Quizplus · Accepted Answer

Price control can help regulate the prices set by a natural monopoly, ensuring that consumers benefit from lower prices while still allowing the monopoly to take advantage of economies of scale.

One Way to Take Advantage of Economies of Scale and to Avoid