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Imagine a natural monopoly in the energy sector facing criticism for high prices and inadequate service. How might the government intervene to address these concerns
Imagine a natural monopoly in the energy sector facing criticism for high prices and inadequate service. How might the government intervene to address these concerns while ensuring economic efficiency? Question 32Answer a. Implement price controls to address high prices. b. Nationalize the monopoly to eliminate high prices. c. Break up the monopoly into smaller competing firms. d. Provide tax incentives to encourage monopolistic behavior
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