An example of a public policy response to a monopoly is:
A) public admonishment.
B) encouraging mergers.
C) antitrust laws.
D) All of these are examples.

Question

Quizplus · Accepted Answer

Antitrust laws are the most appropriate public policy response to a monopoly. These laws prohibit anti-competitive behavior and prevent monopolies from dominating the market, which promotes healthy competition and protects consumers. Public admonishment is not effective in correcting the behavior of a monopoly, and encouraging mergers would only increase market concentration.

An Example of a Public Policy Response to a Monopoly