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When confronted with a natural monopoly that restricts output and charges monopoly prices, the two methods that government have for promoting better outcome are:

A: Public ownership and public regulation.

B: Sole proproetorship and public goods.

C: Antitruct law and horizontal mergers.

D: Creative destruction and laissez-faire.

Verified Answer :

I will go for this by rejecting the options, from the last to the first
.
D: Creative destruction and laissez-faire.


Laissez-faire would not help here, as it's the principle of non-involvement

C: Antitruct law and horizontal mergers.

Anti-trust law is good, but horizontal merger rather leads to monopoly!

B: Sole proprietorship and public goods.
-sole proprietorship can also be a monopoly, it means that the company belongs to one person

Which means that we're left with the answer A

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