question archive What policies can governments use to limit the degree of monopoly power?

What policies can governments use to limit the degree of monopoly power?

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What policies can governments use to limit the degree of monopoly power?

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There are various policies that the government can use to limit the power of monopoly firms. Some of the policies to limit the monopoly power include price capping, price controls, and price rationing. Through these policies the government can fix an upper to the price set by the monopoly firms for their products. Thus with these policies the monopoly firms cannot charge very high price for their products.