monopoly 5

Question 1

gov create laws to encourage competition (antitrust laws) (3)

Answer 1

• not allow mergers
• break up large companies into smaller companies
  -create companies (create substitutes & laws to protect small companies.)

Question 2

regulation

Answer 2

gov watches/ monitors monopoly behaviors.

ex: public utilities commission

Question 3

public ownership

Answer 3

make a monopoly public (the gove runs the monolpoly)

private- lower costs
public- nepotistic (only allow their own ppl & reap the profits for themselves.)

EX: BTL

Question 4

doing nothing

Answer 4

the gov is not knowledgeable in economics so sometimes doing nothing is better.