hansaembo hansaembo
  • 02-09-2017
  • Business
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Explain how and why governments may want to regulate the price setting of a natural monopoly.

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YellowGold
YellowGold YellowGold
  • 13-09-2017
The government wants to protect the consumer's interest, that is why they are regulating the monopoly. Monopolies have the power to set higher prices than the competitive market. They regulate monopolies to prevent excess prices, quality of service( to ensure the firm receives minimum standard of service), monopoly power,promote competition, and natural monopolies( we cannot encourage competition, and it is essential to regulate firm to prevent monopoly of power). 
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