Respuesta :
Government agencies frequently control the prices that natural monopolies impose because, in the absence of regulation.
Briefing:-
natural monopolies will frequently charge prices that are far higher than the market rate. To encourage competition among businesses is the goal of antitrust law.
What transpires in the case of an unchecked natural monopoly?
The amount of output where marginal revenue equals marginal cost would be produced by an unrestrained natural monopoly in an effort to maximize profits.
Why does a natural monopoly need to be regulated by the government?
To begin with, there is a valid basis for government regulation of natural monopolies. Consumers are oblivious to price changes because the electric firm enjoys a monopoly; if the price of energy were doubled, there would be nowhere else for them to buy it, so they would be forced to pay the higher price.
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