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In Canada, what are the challenges facing government policymakers in dealing with natural monopolies? What are the...

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Economics

In Canada, what are the challenges facing governmentpolicymakers in dealing with natural monopolies?

What are the governments possible solutions for naturalmonopoly? List 3 possible examples and explain

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3.7 Ratings (559 Votes)
Now days US are regulated natural monopolies A natural monopolies poses difficult challenges for competition policy in Canada because the structure of the costs demand seems to make competition unlikely are closely A natural monopoly arises when average cost declining over the range of production that satisfies market demand This typically happens when fixed cost is large relative to variable costs As a result one firm is able to supply the total quantity demanded in the market at lower cost than two or more firmsso splitting up the natural monopoly would raise the average cost of production and force    See Answer
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