What is one problem with trying to regulate a monopoly's price?
A) The government needs information on the monopoly's marginal cost.
B) The government needs information on the price people are willing to pay.
C) The government needs to identify which firm is a monopolist.
D) Anything that the government does is problematic.

Question

Quizplus · Accepted Answer

In order to regulate a monopoly's price, the government would need to know the monopoly's marginal cost in order to ensure that the price isn't higher than the cost of production. However, monopolies are typically not forthcoming with this information, making it difficult for the government to effectively regulate prices.

What Is One Problem with Trying to Regulate a Monopoly's