effective government response to a natural monopoly’s tendency to produce less output at a higher cost than the socially optimal quantity?
Which of the following is an effective government response to a natural monopoly’s tendency to produce less output at a higher cost than the socially optimal quantity?
A. A per-unit subsidy
B. A patent
C. A lump-sum subsidy and price ceiling
D. Antitrust legislation
E. A per-unit tax