Public policy responses to a monopoly:
A)aim to break up existing monopolies.
B)prevent new monopolies from forming.
C)ease the effect of monopoly power on consumers.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Public policy responses to a monopoly aim to fulfill all the stated objectives, which are breaking up existing monopolies, preventing new monopolies from forming, and easing the effect of monopoly power on consumers. Breaking up existing monopolies can be accomplished through antitrust laws, while preventing new monopolies can be done by enforcing competition policies. Easing the effect on consumers can be achieved by regulating prices and quality of service, and promoting consumer protection.

Public Policy Responses to a Monopoly