Which of the following are options available to government when dealing with monopolies?
A) b, c, and e
B) nationalization
C) marginal cost pricing regulation
D) marginal revenue pricing regulation
E) breaking up the firm

Question

Quizplus · Accepted Answer

Options B (nationalization), C (marginal cost pricing regulation), and E (breaking up the firm) are all strategies governments can use to address monopolies. Nationalization involves taking the monopoly into public ownership, marginal cost pricing regulation ensures prices are set where the cost of producing one more unit is, and breaking up the firm involves dividing a large monopoly into several smaller entities to encourage competition.

Which of the Following Are Options Available to Government When