QUESTION: EXPLAIN HOW AND WHY GOVERNMENT MAY WANT TO REGULATE THE PRICE SETTEING OF NATURAL MONOPOLY ANSWER REQUIRED PLEASE FOLLOW THE PRESENATION FORMAT GIVEN BELOW PRESENTATION: 1. INTRODUCTION DEFINE MONOPOLY WITH EXAMPLE DEFINE NAURAL MONOPOLY WITH EXAMPLE 2. ANALYSIS MAKE USE OF FIG 8.1 FROM GIVEN PPT AND EXPLAIN IN DETAIL (ONE FIRM CAN ENTIRE FULLFILL THE MARKET DENMAND WITH LOW PRICE AND COST) MAKE USE OF FIG 8.2, 8.3a AND 8.3B FROM GIVEN PPT AND EXPLAIN (THE MONOPOLY ONLY REQUIRED TO EARN ECONOMIC PROFIT AS LONG AS DEMAND IS SUSTANAINABLE) MAKE USE OF FIG 8.4 AND EXPAIN WHAT HAPPEN IF PERFECT COMPETETIVE INDUSTRY BECOME MONNOPOLY (COMPARISION NEEDED) MAKE USE OF FIG 8.7 AND EXPALIN REGULATING NATURAL MONOPOLIES. 3 CONCLUSION
