How does government regulate natural monopolies?
a. ensuring and overseeing one supplier
b. rationing consumption per supplier
c. setting price controls for multiple suppliers
d. subsidizing suppliers during surplus

The answer to this question would be option C: setting price controls for multiple suppliers. This is what we call as price capping and this is how the government regulates natural monopolies. In price capping, the government sets a certain regulation or limit to the price or amount that they can charge to the commodity. Hope this helps.

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