How can price ceilings be used to regulate a natural monopoly?
1 Answer
Feb 24, 2016
Price ceilings can be used to regulate a natural monopoly by ensuring that the sellers or producers of a certain product will not charge too high for the said product.
Explanation:
A price ceiling is a government-imposed price control or limit on how high a price is charged for a product. The government intended price ceilings to protect the rights of consumers.
https://en.wikipedia.org/wiki/Price_ceiling for the definition.
