Answered

Governments most often regulate essential services like water treatment by:

A. creating barriers to entry in monopolistic competition.
B. setting up natural monopolies.
C. eliminating pure competition markets.



Answer :

GinnyAnswer

Final answer:

Governments regulate essential services by establishing natural monopolies to ensure fair pricing and service provision.


Explanation:

Governments most often regulate essential services like water treatment by setting up natural monopolies. In the case of natural monopolies such as water and electricity services, market competition does not function effectively, leading governments to intervene to regulate prices and outputs to prevent monopolistic abuse. These regulations aim to ensure fair pricing and adequate service provision in vital industries.


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