1. One government policy for dealing with a natural monopoly is to:
a) impose a price floor to eliminate the deadweight loss.
b) impose a price ceiling to reduce economic profit.
c) break it up into smaller firms.
d) impose fines on the monopolist.
The correct answer for the question that is being presented above is this one: "b) impose a price ceiling to reduce economic profit." One government policy for dealing with a natural monopoly is to: b) impose a price ceiling to reduce economic profit.
