Government antitrust activity led to the breakup of AT&T in the 1980s because,among other things,it felt that AT&T had too much control over the telecommunications market.What type of market failure was most likely involved?

Question

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The breakup of AT&T suggests that the company had significant market power, which is a type of market failure. Market power occurs when a single firm or a small group of firms have the ability to control market prices and output levels, leading to reduced competition and potential harm to consumers. In this case, AT&T was deemed to have too much control over the telecommunications market, which led to antitrust action to break it up into smaller, more competitive companies.

Government Antitrust Activity Led to the Breakup of AT&T in the 1980s