In the capitalist economy, when the government identifies a firm that has monopolized a product or service, it may order the company to ________, that is, sell off some of its businesses.

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When the government orders a company to sell off some of its businesses, this is known as divestment. This is done in order to break up a monopoly and increase competition in a particular industry. Consolidation refers to the merging of companies to create a larger entity, which is the opposite of what the government would want to do in the case of a monopoly. Bankruptcy is a legal process in which a company declares that it is unable to pay its debts, and is not related to monopolistic practices.

In the Capitalist Economy, When the Government Identifies a Firm