To restrict a firms monopoly power, why cant antitrust authorities just set a fl

Question

To restrict a firms monopoly power, why cant antitrust authorities just set a floor or a ceiling in the market? A. It is difficult to set a fair price, and even if regulators did, the firm would then have no incentive to innovate. B. The government does not have the power to dictate what a firm can charge: it can only stop mergers. C. It is difficult to set a fair price, so regulators do not get involved in the pricing decisions of any monopolists. D. Floors or ceilings lead to inefficiency and deadweight loss, which can be avoided if the monopoly sets its own price.

Explanation / Answer

B . The government does not have the power to dictate what firm can charge, it can only stiop mergers

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