1. One government policy for dealing with a natural monopoly is to:
Aimpose a price floor to eliminate the deadweight loss.
Bimpose a price ceiling to reduce economic profit.
Cbreak it up into smaller firms.
Dimpose fines on the monopolist.

Verified Answer :

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.