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Identify THREE things that our government can DO TO A MONOPOLY (if that monopoly

ID: 1209336 • Letter: I

Question

Identify THREE things that our government can DO TO A MONOPOLY (if that monopoly is abusing its monopoly power). These are NOT things done by the monopoly. Instead you must identify THREE things that we the people (through our government) can DO TO a monopoly. You must identify ALL THREE correct answers for credit.  No partial credit will be awarded.

Regulate pricing

Impose fines

Form a cartel

Enforce the law of diminishing marginal utility

Break up the monopoly

A.

Regulate pricing

B.

Impose fines

C.

Form a cartel

D.

Enforce the law of diminishing marginal utility

E.

Break up the monopoly

Explanation / Answer

A. Regulate pricing

B. Impose fines

E. Break up the monopoly

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