Three examples of solutions to the problems of a monopoly are:
A) harnessing the benefits of competition, reducing trade barriers, and regulating markets.
B) harnessing the benefits of monopolies, reducing trade barriers, and regulating markets.
C) harnessing the benefits of competition, increasing trade barriers, and regulating markets.
D) harnessing the benefits of monopolies, increasing trade barriers, and regulating markets.
E) harnessing the benefits of competition, increasing trade barriers, and deregulating markets.

Question

Quizplus · Accepted Answer

The three solutions proposed in option A (harnessing the benefits of competition, reducing trade barriers, and regulating markets) are all effective ways to address the problems of a monopoly. By fostering competition, consumers have more choices and companies are incentivized to improve their products and services to stay competitive. Reducing trade barriers opens up markets to more competition, which can also decrease the power of a single dominant firm. Lastly, regulating markets can ensure that monopolies do not abuse their power and engage in practices that harm consumers. Overall, these solutions effectively address the negative consequences of monopolies.

Three Examples of Solutions to the Problems of a Monopoly