Regulated+Monopolies

A **Regulated Monopoly** is a form of a monopoly that has limits placed on either its production of control of the inductry by the government. this is done to keep the company from taking too much advantage oif its clients based on the facts that it is the only firm. companies thatare often regulated by government are those that supply goods that are a necessity, like utilieties, which are often natural monopolies. people need heating gas, so the government enforces regulation to try to make it more affordable for more people. they set a price ceiling on it. New York Times illustrates the differnent ways in which energy companies are regulates in different states.

utilities are often regulated.

http://spot.colorado.edu/~kaplan/econ2010/section10/section10-main.html http://ingrimayne.com/econ/Monopoly/Regulation.html http://welkerswikinomics.wetpaint.com/page/Regulated+monopoly?t=anon

Question: which of the following is an example of a regulated monopoly?

a. mcdonalds b. a water company c. walmart

answer: b