Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 12 - Pure Monopoly - Discussion Questions - Page 275: 7

Answer

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Work Step by Step

Even in the case of natural monopolies, there are often regulations. After all, the government knows that natural monopolies, due to the high start up costs, keep other people out of the industry and thus can charge high prices. However, when the government does not deem that this is beneficial for the people, they will often create restrictions.
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