question archive What are some relevant public policy questions, when government considers breaking up a Monopoly? How long can a monopoly earn economic profits? What evidence suggests that some government regulation may reduce competition in practice?

What are some relevant public policy questions, when government considers breaking up a Monopoly? How long can a monopoly earn economic profits? What evidence suggests that some government regulation may reduce competition in practice?

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What are some relevant public policy questions, when government considers breaking up a Monopoly? How long can a monopoly earn economic profits? What evidence suggests that some government regulation may reduce competition in practice?

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There are various public policy questions considered by the government before breaking a monopoly. For instance, are the consumers contended with the quality of services and goods supplied in the market?. Secondly, will the monopoly serve the consumers in a more decent way when the competition is introduced? Monopolies make an economic profit in the short run as there is a shift in the demand curve (long run), enabling the curve of the average total cost to become tangent with it hence making break even the most suitable option. The application of antitrust laws suggests that the government controls the competition in the market. Competition only thrives if the firms obey the antitrust laws since America has the free market system.