One way the government can introduce competition into a monopoly industry is to:
A)break it up along different stages of the production process.
B)split it vertically.
C)split it horizontally.
D)All of these are true.

Question

Quizplus · Accepted Answer

All of these methods can introduce competition into a monopoly industry. Breaking up a company along different stages of the production process (vertical splitting), splitting it into smaller companies that operate at the same stage of the process (horizontal splitting), or a combination of approaches can reduce or eliminate monopoly power and encourage competition.

One Way the Government Can Introduce Competition into a Monopoly