If market failure from monopoly behaviour is deemed small compared to the inevitable imperfections of policies, policymakers may choose to:

Question

Quizplus · Accepted Answer

If the market failure caused by monopoly behaviour is small compared to the imperfections that may arise from policies, policymakers may decide that the best course of action is to do nothing at all. This is because attempting to regulate or break up the monopoly may cause more harm than good, resulting in higher costs and reduced efficiency.

If Market Failure from Monopoly Behaviour Is Deemed Small Compared