Monopoly - monopoly and public policy - dealing with Natural monopoly
3 important questions on Monopoly - monopoly and public policy - dealing with Natural monopoly
What happens to consumer surplus and producer surplus when a monopoly is broken up?
The gains to consumer outweigh the loss to the producer
How does a profit maximizing monopolist act in a way that causes ineffeicency?
It charges consumers price that is higher that the marginal cost by doing so it prevents some potentially beneficial transactions
What is the danger of regulatory capture
Being influenced by the companies they oversee. through money and other influences.
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