Who may regulate a natural monopoly?

Consumers
Corporations
Government
Suppliers

Question

Who may regulate a natural monopoly?

 Consumers
 Corporations
 Government
 Suppliers

anonymous · Answer

b

madhu.mukherjee.946 · Answer

Natural monopolies are uncontestable and firms have no real competition. Therefore, without government intervention, they could abuse their market power and set higher prices. Therefore, natural monopolies often need government regulation.
so its option c

anonymous · Answer

Google has an almost-monopoly in the search engine market on the Internet. There is no indication that its production declines as output rises.

It is now trying to digitize all books to make them available online. This might be viewed as a monopolizing attempt. The government is considering whether to regulate it or not. (May 5, 2009, NPR)

Therefore the best option should be 'Government'