Th3.6: Controlling Monopolies Flashcards
1
Q
Holding a dominant position in an industry is…
A
not wrong in itself but if the firms exploits this to stifle competition, they are deemed to be anti-competitive
2
Q
What kind of efficiency are monopolies?
A
allocative and productively inefficient and so it can be argued that they need to be controlled
3
Q
What does most of this regulation occur for?
A
utilities, which are natural monopolies
4
Q
What are the four main types of regulation for monopolies?
A
price regulation
profit regulation
quality standards
performance targets
