Governments determines the fair price which is allowed to be charged by a monopoly: a) Competition commission b) Rate of return c) Profit cap d) Sliding scale e) Economic regulation

In many countries, the government may use economic regulation to oversee monopolies and ensure they do not exploit their market power, potentially setting price limits to protect consumers. This prevents a single provider from charging exorbitant prices for essential services or goods that lack alternative options. To effectively implement these rules, governments often conduct thorough investigations into the costs and profits of monopolies, assessing what a fair return on investment looks like. This helps strike a balance between allowing the company to remain profitable while ensuring the price remains within a reasonable range for consumers.