Chapter 7.7 Flashcards
1
Q
Abuse of market power
A
Situations where firms engage in activities that result in reduced competition
2
Q
Ways governments can limit market power abuse for natural monopolies
A
Government ownership of natural monopolies
Government regulation of natural monopolies
Marginal cost pricing
Average cost pricing
3
Q
Ways governments can limit market power abuse for normal monopolies or oligopolies
A
Legislation to protect competition
Legislation for mergers
Imposition of fines
